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Home / International Markets / Indian stocks touch record high, Sensex up 1.1%, Nifty surges 36.3% this year
Indian stocks touch record high, Sensex up 1.1%, Nifty surges 36.3% this year

Indian stocks touch record high, Sensex up 1.1%, Nifty surges 36.3% this year

MUMBAI: The benchmark Sensex and Nifty indices edged up 1.1 per cent in early trading. The Nifty surged 36.3 per cent this year, making it the best performing main index in Asia. The Sensex is a close second, at 35.9 per cent, followed by China’s Shenzhen Composite, up 34.2 per cent.
India stocks rallied thanks to the election of prime minister Narendra Modi and hopes that his government will implement business-friendly reforms.
Falling oil prices also extended the rally. While Aussie and US energy firms may be wringing their hands over the four-year low in oil prices, India’s economy is a big beneficiary of the slide, which accelerated on Thursday when Opec has failed to agree on a production cut.
Cheaper oil benefits many Indian companies who are helped by cheaper energy. A lower import bill for oil also helps the country close the gap in its trade balance and makes it easier for the central bank to achieve its inflation target.
Mr Modi has already taken advantage of the cheaper oil price by implementing deregulatory measures. Indonesia’s new president, Joko Widodo, has done the same.