February 22 2020
BSE Sensex cheers govt's reform push, up near 200 pts
17 September 2012

The BSE Sensex firmed up further on Monday, opening the week 187 points higher, after the government pushed for big ticket reforms by approving foreign direct investment (FDI) in mutli-brand retail and aviation sectors.

The 30-share Bombay Stock Exchange (BSE) index was at 9:45 am trading 187.44 points, or 1.02 per cent, higher at 18,651.71. The 50-share National Stock Exchange (NSE) Nifty was at 5,640.90 - up 63.25 points or 1.13 per cent.

The Sensex had risen for the eight straight day on Friday, jumping 443 points to close at a fresh 7-month high, after investors cheered the government's decision to hike diesel prices and US Federal Reserve approved a new stimulus plan.

The Manmohan Singh government finally shrugged off its paralysis on September 14, pushing through big bang reforms to open the country's retail, civil aviation and broadcasting infrastructure sectors to foreign investors.

The decision to allow 51 per cent FDI in multi-brand retail and 49 per cent in the aviation sector was taken within a day of increasing diesel prices and capping subsidised LPG cylinders per family.

The UPA government had been under fire for holding back reforms that could have brought in much-needed foreign investment and reduced its humungous subsidy bill to bring the slowing economy back on the high growth trajectory.

However, all eyes will be on the Reserve Bank of India (RBI) on Monday, which will be releasing its Mid-Quarter Review of Monetary Policy 2012-13 later in the day.

The apex bank may surprise the street on its part after the big reform announcements by the government with some easing in policy rates, even though inflation remains stubbornly high.



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