Industry not surprised by spurt in market

The industry on Monday said it was not surprised by a 'euphoric' rise in the stock prices as the market went into a buying frenzy on the back of emergence of a stronger UPA, set to start its new term on a confident note.

Apex business chambers FICCI and Assocham described nearly 2,100-point rise in Sensex as an event that marked the economy moving towards reforms again.

"The euphoric rise of markets this morning was on back of certain positive expectations -- much desired macro economic stability and implementation of economic reform measures," Ficci president Harsh Pati Singhania said in a statement.

He said that FDI in sectors like insurance and retail may attract global capital into the Indian economy.

Investors' buying frenzy immediately after opening of the market forced halting of trade on circuit breaks.

Assocham said that the euphoria of stock market was justified in the face of a stable government being installed this week.

Investor confidence would increase since the reforms-friendly government led by Manmohan Singh would be in place, Assocham President Sajjan Jindal said.

"The new government would be independent in taking decisions in insurance, banking and labour would now be taken without any leg pooling," Jindal said.