Monday May 18, 08:47 AM
Trading halted on India markets after poll surge
MUMBAI (AFP) - Trading was suspended on India's stock markets Monday when prices surged beyond the allowed upper limit as dealers welcomed the Congress party's clear election victory.
The benchmark 30-share Sensex rocketed more than 17 percent to 14,272.63, up 2,099.21 points, when the market re-opened after an initial two-hour halt following a 14 percent rise at opening.
"There will be no more trading for the day as the upper limit has been breached twice," a Bombay Stock Exchange spokesman told AFP by telephone.
The upper limits for indices are based on the quarterly close.
Twice in the day, trading came to a halt as investors piled in after Saturday's results, which put Congress in a strong position to enact long-awaited economic reforms and to revive growth.
"This was unprecedented trading activity. If this continues, there is a risk of over-heating for the markets," said Bhaskar Kapadia, a partner with brokerage Pyramid Securities.
"A lot of retail investors are waiting to just start buying again," he said.
Property, infrastructure and banking stocks were the main gainers.
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