India Halts Stock Trading as Prices Soar by Limit
May 18 (Bloomberg) -- India halted stock trading as benchmark indexes soared on speculation Prime Minister Manmohan Singh's election victory will help his party implement reforms to boost economic growth.
Trading on the Bombay Stock Exchange was halted within seconds of the 9:55 a.m. start after the Sensitive Index, or Sensex, surged 1,306, or 10.7 percent, to 13,479.39, according to the stock exchange Web site. The surge triggered the first- ever freeze in trading after breaching a maximum upper limit.
Singh's ruling Congress party won its most seats since 1991 in the election. The victory will enable the party to start forming a new government today without needing the support of communist lawmakers who frustrated plans to entice foreign investment and sell state-owned companies in his first five-year term.
India's two main exchanges revise index limits each quarter. For the quarter ending June 30, trading is halted on both exchanges if either the Sensex climbs 975 points or the Nifty Index advances 300 points, according to exchange circulars.
To contact the reporters on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net
May 18 (Bloomberg) -- India halted stock trading as benchmark indexes soared on speculation Prime Minister Manmohan Singh's election victory will help his party implement reforms to boost economic growth.
Trading on the Bombay Stock Exchange was halted within seconds of the 9:55 a.m. start after the Sensitive Index, or Sensex, surged 1,306, or 10.7 percent, to 13,479.39, according to the stock exchange Web site. The surge triggered the first- ever freeze in trading after breaching a maximum upper limit.
Singh's ruling Congress party won its most seats since 1991 in the election. The victory will enable the party to start forming a new government today without needing the support of communist lawmakers who frustrated plans to entice foreign investment and sell state-owned companies in his first five-year term.
India's two main exchanges revise index limits each quarter. For the quarter ending June 30, trading is halted on both exchanges if either the Sensex climbs 975 points or the Nifty Index advances 300 points, according to exchange circulars.
To contact the reporters on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net
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