India’s Sensex adds 17 percent on election results

On a day when Asia-Pacific region markets were mixed, India’s Sensex added 17.34 percent to 14,284.21 on election results promised more political stability in the world’s second largest nation by population, biggest democracy and twelfth-largest economy.

The outcome of elections there gave the ruling Congress party a near-majority in parliament that will allow a new government to be formed without Communist support.

The huge gains limited trade however, as trade was stopped almost immediately after the opening bell when a gain of 15 percent set off circuit breakers that closed trade; when trade was reopened about two hours later, circuit breakers were soon tripped again and trade was halted for the day before noon local time, preserving the 17 percent gain for the Sensex.

The gain for the Sensex was its biggest daily jump since March 2, 1992.

Elsewhere in the region, the Shanghai Composite added 0.28 percent to 2,652.78 while the Kospi was up 0.36 percent to 1,386.68, the Taiex was 1.37 percent higher to 6,577.81, the Hang Seng added 1.38 percent to 17,022.91 and the Straits Times Index gained 1.7l4 percent to 2,176.98.

Markets were lower in Tokyo and Sydney.

In Tokyo, the Nikkei 225 fell 2.44 percent to 9,038.69 while the Topix index was down 2.49 percent to 859.71 and the Mothers market dropped 0.71 percent to 352.8.

Exporters declined, with Panasonic (TYO: 6752) falling 7.6 percent after it said it will lose more than had been expected in full-year results, while Chugai Pharmaceutical (TYO: 4519) added 4.6 percent on hopes it will make money on sales of the flu drug Tamiflu.

In Australia, the Sydney Ordinaries dropped 0.99 percent to 3,721.6 while the S&P/ASX200 was down 1 percent to 3,735.6.

European markets were higher on the session.

In London, the FSTE 100 was up 2.26 percent to 4,446.45 while the FTSE 250 gained 1.39 percent to 7,576.63.

Lloyds Banking Group (LSE: LLOY) led the 100 and the banking sector with a gain of 9.87 percent, followed by Standard Chartered (LSE: STAN; SEHK: 2888), which added 8.51 percent.

Vedanta Resources led gains in a mixed mining sector as it added 6.76 percent, while declines in the sector were not that big, miners held four of the top five spots on the 100’s list of decliners, with losers in the sector led by Mexico-based gold and silver miner Fresnillo (LSE: FRES).

The FTSE Eurofirst 300 was up 2.24 percent to 858.73 while the IBEX added 2.01 percent to 9,159.3, the CAC-40 was 2.41 percent higher to 3,245.39 and the Dax gained 2.42 percent to 4,851.96.

There was only one loser on the CAC-40 as GDF Suez (Euronext: GSZ, GSZB) dropped 1.76 percent in the utilities sector while, also in the utilities sector, RWE (FWB: RWE) dropped 0.25 percent on the Dax.

Banks were up as Commerzbank (FWB: CBK) added 9.06 percent for the best performance of the day on the Dax, followed by Deutsche Bank (FWB: DBK; NYSE: DB), which added 7.2 percent while BNP Paribas (Euronext: BNP; TYO: 8665) was up 5.9 percent, Societe Generale (Euronext: GLE) was 4.24 percent higher and Credit Agricole (Euronext: ACA) gained 3.52 percent.

STMicroelectronics (Euronext: STM; NYSE: STM) turned in the best performance of the day on the CAC-40 as it added 0.13 percent, followed by hotels operator Accor (Euronext: AC) with a gain of 7.5 percent.

At nearly 1:30 p.m. in New York, the Dow Jones Industrial Average as up 2.1 percent to 8,442.35 while the Nasdaq Composite had added 1.9 percent to 1,712.14 and the S&P 500 was 2.05 percent higher to 901.02.

Department stores saw gains after DIY retailer Lowe’s (NYSE: LOW) said it’s earnings were better than had been anticipated.

Lowe’s was up 9.16 percent while JC Penney (NYSE: JCP) added 0.3 percent, Macy’s (NYSE: M) was 6.62 percent higher after being put on Goldman Sachs’ (NYSE: GS) “conviction buy” list, and Dillards (NYSE: DDS) gained 27.03 percent.

Nordstrom’s (NYSE: JWN), however, dropped 1.1 percent on a downgrade from “neutral” to “sell” from Goldman Sachs.

Story link: India’s Sensex adds 17 percent on election results