Indian shares surged to close 4.6 percent higher on Wednesday as global markets rebounded, with positive domestic political sentiment also helping, dealers said. The benchmark Mumbai 30-share Sensex index rose 614.61 points to 13,964.26.
A bloc of Indian left-wing parties Wednesday formally requested a no-confidence vote in parliament after they stopped supporting the ruling coalition over a controversial nuclear deal with the United States. "Equity markets have recovered after the leftist parties' decision to withdraw support," said Shuchita Mehta, an economist with Standard Chartered bank.
"From the perspective of long-term commercial interests, the government's decision to go ahead with the nuclear deal is positive." Property, power and banking stocks rose, which had lagged in previous weeks. Sentiment improved on hopes that the Congress-led government of Prime Minister Manmohan Singh, would quicken economic growth, after managing to win a pledge of support from a regional party. The Left's pull-out Tuesday meant the four-year-old ruling coalition was short of the required number of votes in parliament to pass bills.
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