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Last Updated: Tuesday, 20 September 2005, 12:23 GMT 13:23 UK
Indian stock market at new peak
Bombay Stock Exchange
India's stock market has surged strongly during 2005
India's benchmark Bombay Stock Exchange (BSE) index has breached the 8,500 point level to reach another new high.

The BSE sensitive index (Sensex) closed up 55.44 points at 8,500.28.

The Sensex has gained more than 25% this year, spurred on by foreign investors who are pumping money into Mumbai's stock market.

Banks were the biggest winners, with the government-owned State Bank of India and private sector ICICI Bank both rising strongly.

India's economy, one of the fastest-growing in the world, is forecast to grow by 7% this year, despite concern over rising oil prices.

Reforms bolstered

The strong market performance has come as a boost to India's Congress-led coalition government, which is under pressure from its Communist allies to roll back some of its economic reform plans.

Just over a year ago, when the party was voted into office, Indian share prices recorded their biggest fall in a single day's trading over concerns that the new government would stall economic reforms.

"Black Monday" wiped billions of dollars off the value of India's listed companies.

But India has continued to enjoy strong economic growth, lifted by growth in exports and further market reforms.




SEE ALSO:
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