India stocks surge after farmer-friendly budget

AFP, MUMBAI: Indian stocks Tuesday posted their biggest rise since Prime Minister Narendra Modi came to power almost two years ago, after the government presented a budget expected to boost rural demand.
The main Sensex index on the Bombay Stock Exchange closed up more than three per cent, driven higher by rises in consumer stocks.
At one point the index was up 3.50 per cent but it declined marginally to finish the day 3.38 per cent, or 777.35 points, higher at 23,779.35.
On Monday Finance Minister Arun Jaitley announced spending of $5.2 billion to double farmers’ incomes over five years through measures including a crop insurance scheme and better access to markets.
He said billions more would be spent on improving rural infrastructure and ensuring all Indian villages have electricity within two years.
With two-thirds of India’s 1.2 billion population living in rural areas, investors are betting that the pledges will increase consumer spending in the countryside.
Rural India has been suffering after two years of poor monsoon rains, widespread drought and high inflation.
Cigarette-makers, motorcycle manufacturers and sellers of white goods such as refrigerators and washing machines all posted big gains Tuesday.

 

India stocks surge after farmer-friendly budget

AFP, MUMBAI: Indian stocks Tuesday posted their biggest rise since Prime Minister Narendra Modi came to power almost two years ago, after the government presented a budget expected to boost rural demand. The main Sensex index on the Bombay Stock Exchange closed up more than three per cent, driven higher by rises in consumer stocks. At one point the index was up 3.50 per cent but it declined marginally to finish the day 3.38 per cent, or 777.35 points, higher at 23,779.35. On Monday Finance Minister Arun Jaitley announced spending of $5.2 billion to double farmers incomes over five years through measures including a crop insurance scheme and better access to markets. He said billions more would be spent on improving rural infrastructure and ensuring all Indian villages have electricity within two years. With two-thirds of Indias 1.2 billion population living in rural areas, investors are betting that the pledges will increase consumer spending in the countryside. Rural India has been suffering after two years of poor monsoon rains, widespread drought and high inflation. Cigarette-makers, motorcycle manufacturers and sellers of white goods such as refrigerators and washing machines all posted big gains Tuesday.