Indian stocks surge as Modi takes oath

Indian shares surged past the psychologically key 25,000-point level on Monday as right-wing leader Narendra Modi was sworn-in as prime minister, with investors betting he would unleash economic reforms. The Bombay Stock Exchange's benchmark index, known as the Sensex, rose nearly two per cent to 25,175.22 points. But shares then retreated as investors locked in profits and the Sensex ended the day just 0.10 per cent higher at 24,716.88 points. ‘The return of the markets to 25,000-plus levels shows gains we saw on election day were not a bubble,’ said Alok Churiwala, head of Churiwala Securities based in Mumbai. ‘People really expect this government to perform well,’ Churiwala added. The index touched a lifetime high of 25,375.63 points on May 16 when Modi and his BJP posted a landslide victory in Lok Sabha (parliament) elections, according to AFP.