Markets showing confidence in Modi's policies: BSE executive

With Indian equity markets surging to new levels this week, an official of the Bombay Stock Exchange (BSE) has said that market behaviour is reflecting its growing confidence in the policies of the government.

Indian equity markets on Tuesday surged to touch new 52-week-high levels following crucial state election results declared on March 11.

"Now we have seen someone for almost three years, and he (Modi) is winning, so that is some sort of connect with the people, which is sort of unbelievable," BSE Chief Executive Ashish Kumar Chauhan told BTVi in an interview.

"And that is also giving a lot of comfort...like GST (Goods and Services Tax) has been a very tough grind without majority in the Rajya Sabha and stuff... they have been able to pull it through," he added.

Chauhan said that for the investors, there was now a more understanding of the situation, about the policies, about the man and also how it was going to go forward in future.

The barometer 30-scrip sensitive index (Sensex) of the BSE touched its new 52-week-high level in 24 months. It closed on Tuesday at 29,442.63 points -- up 496.40 points, or 1.71 per cent, from it previous close at 29,946.23 points.

The NSE Nifty closed the day's trade with a gain of 152.45 points or 1.71 per cent, at 9,087 points after touching a new high of 9,120.6 points.

"When people from outside come first, or large investors, they worry about stability of policies and continuity of policies. So here they have seen the man, they have experienced and they have their views and those views are slowly changing," Chauhan said.

"I don't look at specific numbers. Thirty-thousand is a number we have reached earlier also and we may even reach higher numbers, probably significantly higher numbers over the next 10-15 years," he added.