India Has Biggest One-Day Change Ever

India's Sensex rallied 17.34% Monday on unexpected election results for its biggest one-day gain ever in its 30 year history. As shown in the bottom table below, the next biggest one-day gain came in March 1992 when the index rallied 13.14%. From its peak in January 2008 to its recent low, the Sensex dropped 60.91%. From its low, however, the index has now rallied 75.04% in just over two months. Even after this 75% gain, India needs to rally another 46.13% to reach its old highs.

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Comments

[Xingonghua:]

Hawala money from UBS in switzerland has entered Indian market with freehand provided by corrupt congress government. YOu will see the market bloated with black money. This is money owned by Indians escapign taxes and now it is being scrutinized outside they are parking it in the stocks. In India you can pay bribes for anything.

May 19 08:18 AM

[DiggerUK:]

The boom in Indian stocks of well over 15%+ will more than likely come to be known as the first recorded instance of "A dead elephant bounce"

We all know what light touch regulation did in the developed countries, what is different this time. The fact that foreign investors can get in on the act?

True, unlike China that has all the forex reserves it needs, India needs investment. But if the Indian home market can't absorb the products who is going to ?

Goods produced don't make a profit, goods sold do.

May 19 10:18 AM

[Mad Hedge F...:]

The Congress Party won an upset victory in national elections, its coalition taking 262 out of 543 seats, paving the way for much needed economic reforms. At the top of the list is a liberalization of foreign investment restrictions, which will unleash torrent liquidity into the stock market. After two limit up moves took the Bombay Sensex ($BSE) up 17%, exchange officials shut down the market. This “melt up” is a great “tell” for global capital markets as it shows you the tremendous extend of the latent buying of high growth emerging markets that is out there. This is a theme that I have been hammering away on all year, and will continue to do so until I cash in my chips (gratuitous Vegas reference).

May 19 11:18 PM