The BSE sensex scaled to a two-year high on the back of the massive mandate received by the BJP in Uttar Pradesh and Uttarakhand. Photograph: (Reuters)
The rally was backed by solid IIP numbers
Riding high on a BJP victory in Uttar Pradesh and Uttarakhand, the BSE Sensex today touched a two year high and ended at 29442.63, up 496.4 points, and the Nifty crossed the 9000 barrier and closed above it for the first time.
Solid Index of Industrial Production numbers alo propelled the markets to new highs as investors felt confident that the reform agenda will be pushed harder by the BJP government.
Earlier, the Chief Economic Adviser, Arvind Subramanian, said that the election verdict will give the Modi government a "political mandate" to carry out its economic agenda, reported PTI.
"The government now has the political mandate for doing what it wants to do. And that will include how do we further the development process," Subramanian told PTI on the sidelines of the event.
"What specifically needs to be done, that we'll see. But I think there is a strong political mandate for the government and the Prime Minister," he said.
On demonetisation, he said that there are a number of milestones which need to be achieved to call it a success.
The verdict also points to the fact that the government's demonetisation move received a thumbs-up from the people.
The verdict will help BJP gain in terms of increasing its Rajya Sabha strength and a smooth passage for its economic and social agendas.
(WION with inputs from PTI)