The government has again talked up the markets, after having talked them down with the market-insipid Budget. According to Bloomberg the Bombay Stock Exchange's Sensex index on Friday became the world's best performing index out of 88 that it tracks across the global markets.
The announcements of introducing reforms in the pensions, banking, insurance sectors, without letting go of full control helped share prices to rise on Friday. The government’s stated objective is to increase foreign investment by removing a 10 per cent cap that is in effect currently that prevents foreign investors from exercising voting rights in banks that are in private sector. In insurance the cap on foreign investment is set to go up to 49 per cent from the present 26 per cent.
But it was not confined to one day. The extent of the positive impact on the stock markets allowed the Sensex to log the best week since May 22.
Sensex rose 494.67 points, or 3.5 per cent, to 14,744.92 points on Friday.
The index gained 9.2 per cent this week.
The S&P CNX Nifty index on the National Stock Exchange was up by 143.55 points, or 3.4 per cent, to close at 4,374.95 points.
On the BSE ‘A’ group stocks, the top 10 weekly performers are Bhushan Steel with a gain of 27.9 per cent. Among the worst losers is KSK Energy, whose stock dropped by as much as 17.9 per cent.
Elsewhere in the world, especially in the US, on the Wall Street stocks closed this week with the biggest gains since mid-March.