2014.11.3021:22:39UTC+00Indian stocks reach all-time high on oil slump

Indian stocks reach record high on bets that the oil will lose its biggest weekly decline since year 2011. Investors are hoping for a cutting down of rates in the upcoming week.

The S&P BSE Sensex added 0.9% to 28,693 at the end of trade in India. The index has, in total for the month, gained 3%. It is the sixth consecutive week that the gauge advanced. The rally of the measure is largely attributed to the plummeting oil prices that are driving consumer inflation down the 6% goal of the Reserve Bank of India headed by Governor Raghuram Rajan.

Indian Oil Corp. surged to its biggest gain in seven weeks. The company headed the rally among refiners. The State Bank of India jumped to its highest since the year 2010 as Jet Airways Ltd. added its biggest gain in five years.

The central bank meeting for the country will be held on December 2. In this meeting, policies will be reviewed. According to a Bloomberg forecasts, the economic growth is estimated at 5.1% for the third quarter.

Head of emerging markets equities at Nomura Asset Management, Jonathan Bell, commented to Bloomberg that the emerging markets including India are taking positive stimulus from the plummeting oil prices. Bell adds that the cheaper oil means that consumers have more money in their pockets thus allowing the government to seize the opportunity for policy reforms to cut down on subsidies.

Oil prices are still at record lows with the value settling at its lowest level since May of 2010. The 12-nation Organization of Petroleum Exporting Countries or OPEC kept steady its collective production ceiling at the rate of 30 million barrels a day.