NEW DELHI—Indian shares rose sharply Wednesday, a day after a tight confidence vote fell in favor of the government and ended weeks of political uncertainty.
The Bombay Stock Exchange's benchmark Sensex index rose as much as 5.2 percent to 14,840.8 points, before falling back to 14,616.91 in afternoon trade, up 4.8 percent.
On the broader National Stock Exchange, the main S&P Nifty index rose 4.5 to 4,432.
Indian markets have been volatile in recent weeks with several sharp declines as investors worried over inflation and the stability of the federal government.
The confidence vote ended speculation over an early election and allowed Prime Minister Manmohan Sigh to turn the page on political squabbling that had worried investors and stalled government action.
Finance Minister P. Chidambaram said the government would now push ahead with unfinished economic reforms that would include drafting new legislation in insurance and banking sectors and creating a pension regulatory body, according to a report by the Press Trust of India news agency.
