Markets surge on reform hope
The Sensex was up 94.94 points or 0.49% at 19,486.80, while the Nifty gained 30.40 points or 0.5% to 5930.9. The ' gains were led by interest rate-sensitive companies that added between 2% and 3% on Thursday. The Bank Nifty, the NSE’s sectoral index on banks, rallied more than 1% to a two-year high.
The market’s recent rally, which was triggered by Goldman Sachs upgrading its outlook on Indian equities, is further powered by expectations that the government will strengthen its reforms stance post the FDI debate in parliament. Goldman joined other foreign brokers including JPMorgan, Morgan Stanley, Deutsche Bank and UBS that had raised their outlook on the Indian market in the last six months.
In fact, the Indian market has outdone not only those in BRIC peers but also most Asian counterparts. Having gained more than 5% in the last seven trading sessions, both the Sensex and Nifty, with year-to-date gains of 26-28%, are two of the best-performing emerging market indices.
In contrast, China's Shanghai Composite is the worst performer, having lost
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