Indian stocks surged by more than 17% yesterday, forcing the market to close after the country's ruling coalition, led by the Congress Party, won a decisive electoral mandate.

Trading at the National and Bombay stock exchanges was suspended twice as frenzied buying triggered circuit-breakers designed to limit wild swings. The first suspension came in the morning, with leading stocks vaulting almost 11% as markets opened.

A two-hour break was followed by another burst of enthusiasm, halting business for the rest of the day. Although curtailed, the session saw the biggest single-day gain for the Bombay Stock Exchange's Benchmark Sensex 30 index, which ended up 17.3% at 14,284, an eight-month high. The bulls also dominated the National Stock Exchange's Nifty index of top 50 stocks, which closed up nearly 18%.

The Independent