India ETF Buying Surge Suspends Market

India ETF is an India focused exchange traded fund and obviously there is a huge demand for an India ETF due to the decisive mandate to the Congress-led UPA. This gave the Indian investors confidence they needed to boost the BSE Sensex to 2100 points.

According to DDNews "Trading was suspended for two hours within seconds of opening of the market after the BSE surged by over 1,300 points and the authorities closed the floor immediately after trading resumed at 1155 hours. The BSE sensex closed 17 percent higher at 14,272.63.

Echoing the sentiment, the NSE index also rose by 20 percent, prompting the authorities to suspend trading for the day."

What happens is that UPA's winning in the election gave the investors the confidence that the economic reforms will continue in the same pace without probable fluctuations. This explains the high demand in India ETFs.

Now the investors from New York and London are thinking how will this boost in India ETF confidence translate into European markets and in the Wall Street. Analysts have more hopes on this government in Idian then prior governments that have not been successful in driving the Indian economic reforms. Successful economic reforms may boost the confidence in the Asia Pacific region reaching to US and EU markets.