Surge in stock market in wake of reforms in retail, aviation

The Bombay Stock Exchange (BSE) Sensex today hit a 14-month high after the government's decision to approve foreign direct investment (FDI) in retail and airlines, created a positive sentiment in the stock market. Market expert Sunil Shah said in Mumbai that the reforms had done away with the perceptions of a policy paralysis in the Manmohan Singh-led UPA government. Shah added that the government's move had raised hopes in the market as the Prime Minister ruled out a rollback, with retail and airline company shares performing well. The Cabinet Committee on Economic Affairs (CCEA) on Friday approved FDI in retail, civil aviation, broadcast and power sectors.