[R]6:00PM Mumbai – Stocks surged on speculation that BJP led coalition is likely to lead in the parliament election. Investors are looking for a clear majority for one coalition to lead the nation and bring political stability.[/R]

Stocks in Mumbai surged after BJP led coalition appeared to be leading election results. The benchmark index Sensex soared 4% on the expectation that a clear majority by any one coalition will bring political stability and the nation will focus on economic development.

On another note, industrial production declined 2.3% in March from a year ago month after falling at a revised rate of 0.7%. However, investors looked beyond the government statistics for March as car sales increased in April by 4.2% after gaining 1% in March.

The Sensex index in India increased 475.04 or 4.07% closed to 12,158.03 and CNX Nifty increased 3.7% to 129.75. The rupee traded down to 49.59 against a dollar.

Of the stocks in the BSE trading, 1,416 increased, 1,119 declined and 56 were unchanged. Of the stocks in Sensex index of 30 stocks, 26 increased and 4 declined.

Daily trading turnover on the BSE increased to 4,943 crore rupees from 4,380 crore rupees in the previous session.

Kotak Mahindra led gainers in the BSE trading with a rise of 9.5% followed by gain in Axis Bank of 8.2%.

Reliance Industries surged 6% to 1,971.50 rupees after Ratnagiri Gas & Power agreed purchase natural gas from the company at a fixed price of $4.60 per mBtu, nearly 30% higher than the average price in the month of March in New York trading.

State Bank of India increased 2.8% and ICICI Bank surged 6.7%. HDFC Bank increased 3.9% HDFC soared 8%

Kotak Mahindra surged 9.5% to 483.40 rupees after it reported fourth quarter profit increase of 102.57 crore rupees.

Realty stocks participated in the rally. Housing Development and Infrastructure surged 8.2% to 180.25 rupees. DLF increased 3.6% to 236.25 rupees, Unitech Ltd added 6% to 51 rupees and Sobha Developers declined 15 paisa to 110.05 rupees.

Capital goods stocks participated in the rally. Larsen & Toubro added 2%, Bharat Heavy Electricals gained5% to 1,688.05, Thermax added 3.1% to 257.40 rupees, and Siemens India declined.

Gujarat NRE Coke increased 4.2% after its subsidiary in Australia received $50 million of debt funding to facilitate its coal mining operation.

Infosys increased 5.5%, TCS gained 3.6% and Wipro surged 7.4%.

Maruti Suzuki India increased 3.4%. Bharat Forge rose 2.1% or 2.85 rupees to 139.55 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 153.37 or 1.62% to 9,298.61, Hang Seng index in Hong Kong increased 65.69 or 0.38% closed to 17,153.64, CSI 300 index in China higher 63.25 or 2.32% closed to 2,788.56. ASX 200 index in Australia decreased 48.80 or 1.24% closed to 3,877.20. The KL Composite index in Malaysia lower 2.48 or 0.24% closed to 1,023.02.

The Kospi Index in South Korea decreased 11.65 or 0.82% to close at 1,403.51. SET index in Thailand closed higher 9.36 or 1.75% to 544.54 and JSE Index in Indonesia increased 11.28 or 0.62% closed to 1,842.02. The Sensex index in India increased 475.04 or 4.07% closed to 12,158.03.