The stock and the forex markets seem to be quite happy with the current political drama being played out. The 30-share BSE Sensex zoomed by 450 points to touch a new high of 18809. The 50-share NSE Nifty also rallied parallel to touch the 5700 level today as Mulayam Singh’s Samajwadi Party extended its support to rescue the UPA government. The party would support the UPA from outside.
It seems to be a major trigger for the market as the government is likely to move ahead with other reforms like insurance in FDI, land acquisition bill, pension reform bill etc. The market fell by more than 200 points after the TMC chief Mamata Banerjee had withdrawn support over FDI in retail and the diesel hike.
Joining the cheerful mood, the rupee also appreciated sharply, rising by 69 paise to 53.69 against the US dollar.