Sensex surges nearly 300 points on energy reforms, state elections

MUMBAI (Reuters) - The BSE Sensex surges nearly 300 points and the Nifty gains 90 points after the government's energy reforms lead to a rally in energy firms, while wins by Prime Minister Narendra Modi's party in two state elections raise 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 Maharashtra and Haryana.

State run oil refiners surged, with Hindustan Petroleum Corp up 5.5 percent. Bharat Petroleum Corp rose 3.5 percent.

 

Shares in oil explorers also jumped: Oil and Natural Gas Corp gained 6 percent.

(Reporting by Abhishek Vishnoi, Indulal PM and Gaurav Pai; Editing by Rafael Nam)