Sensex surges post diesel hike, eyes fiscal reforms

The BSE Sensex jumped to more than two percent by mid day today, scaling seven month highs after the government announced a hike in diesel prices, raising prospects of more fiscal reforms to aid the struggling economy. Though the hike in diesel prices has enraged the opposition, investors have sensed it as government's long awaited step to push through reforms. Siddharth Kuawala, a stock market expert in Mumbai said that the fuel price hike will help India slashing its subsidy burden.