India Fund Soars on Election Returns

Shares of India Fund(IFN Quote) soared over 20% in afternoon trading, on the heels of the victory of the Congress Party, which ran on a platform of instituting long-awaited economic reforms.

India Funds owns stakes in ICIC Bank(IBN Quote), Infosys Technologies(IMFY Quote) and HDFC Bank(HDB Quote), among others.

Month-long elections ended this weekend with the Congress Party unexpectedly capturing 261 seats. While this is still 11 seats shy of a majority, it was one of most crushing electoral victories in nearly two decades of fractious coalition politics.

The victory raised investors' hopes of a revival in foreign direct investment, tax reform, economic growth and infrastructure spending, which was long road-blocked by the communist faction.

Shares of ICIC skyrocketed 27% to $2,966, Inforsys Techologies grew 8% to $34.67 and HDFC leaped 21% to $95.77.

Bank of New York Mellon's India ADR Index, which tracks 13 Indian companies trading in the U.S., is up 18% in afternoon trading.