India Fund Soars on Election Returns
Shares of
India Fund
(IFN) - Get The India Fund Inc. Report
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) - Get ICICI Bank Ltd. Report
,
Infosys Technologies
TheStreet Recommends
(IMFY)
and
HDFC Bank
(HDB) - Get HDFC Bank Ltd. Report
, 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.
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