Sensex over 1 percent on reforms, state election boost

MUMBAI (Reuters) - The BSE Sensex and Nifty rose more than 1 percent on Monday to mark their biggest daily gain in more than one week after the government's energy reforms led to a rally in oil firms, while wins by Prime Minister Narendra Modi's party in two state elections raised expectations for additional reforms.

The government on Saturday removed diesel price controls and raised the cost of natural gas. Analysts said markets will now expect more measures after results on Sunday showed the Bharatiya Janata Party won elections in the states of Maharashtra and Haryana.

Oil and Natural Gas Corp provisionally gained 5 percent, while refiners such as Hindustan Petroleum Corp jumped 6.8 percent.

 

The Sensex provisionally closed 1.21 percent higher, while the broader Nifty gained 1.25 percent, marking their biggest daily gains since Oct. 9.

(Reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)