Indian shares jump as Modi heads for PM job

May 17, 2014 - 12:08:09 am
Pedestrians react as they watch as a digital broadcast presents the rolling share price information on the facade of the Bombay Stock Exchange in Mumbai yesterday.

HONG KONG: Asian markets were mixed yesterday following another sell-off on Wall Street and worse-than-expected eurozone data while Mumbai hit a record high as pro-business candidate Narendra Modi headed for a landslide general election victory.

Tokyo fell 1.41 percent, or 201.62 points, to finish at 14,096.59 owing to a stronger yen and Sydney eased 0.58 percent, or 31.8 points, to close at 5,479.0 but Seoul edged up 0.16 percent, or 3.24 points, to 2,013.44.

Shanghai reversed morning losses to end flat, edging up 1.53 points to 2,026.50. Hong Kong eased ended flat, dipping 17.95 points to 22,712.91, capping off a six-day winning streak.

Indian shares jumped more than six percent at one point, hitting a record high above 25,000 points, before easing back a touch as opposition leader Modi prepared for become the country’s next prime minister.

His Hindu nationalist Bharatiya Janata Party (BJP) declared “the start of a new era” in the world’s biggest democracy as preliminary results and media projections put them on track for the first parliamentary majority by a single party in 30 years.

Banks were leading the gainers, with Canara Bank surging 21.57 percent and Andhra Bank jumping 16.17 percent, while the rupee rallied 1.14 percent to 58.52 against the dollar.

The currency has been strengthening in recent weeks on expectations that Modi would win the marathon six-week election and introduce structural reforms to turn the economy around. It has now risen 17.45 percent since it sank to a record low of 68.85 in August.

AFP

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