Dow closes up 1.7% in post-election rally after AIADMK appoints new director

NEW DELHI — Dow Jones Industrial Average DJIA, +0.50% jumped 2.2% Thursday after the Indian Automobile Association appointed a new director.

The agency, which had announced in January that it was hiring a director, said the appointment would take effect Feb. 1.

The decision comes amid a strong Indian economy and rising stock markets.

Dow Jones did not say how long the appointments would last.

The Dow rose more than 2% in pre-market trading.

The Nasdaq also rose slightly to close at 17,000.

Analysts said the new director will have a large influence on the future direction of the company.

The association is the countrys largest trade association, with nearly 200,000 members.

“It’s going to be a very important part of their mandate,” said Keshav Shah, chief investment officer at HCL Capital Advisors.

“We expect this to be one of the most significant things they do.”

The Indian Automotive Association said it was appointed by the AIADKs government-owned corporation to oversee the organisation of the new AIADM, as part of a broader restructuring of the group’s board of directors.

The new CEO will be appointed by India’s parliament.

The association said the director will be named on Feb. 8.

Dow did not disclose the director’s name.

The announcement comes as India’s stock markets have soared over the past few weeks.

The benchmark index of gauge Sensex gained 6.2%.

The Dow Jones industrial average jumped 2% Thursday on reports that the AIAA would appoint a new executive to oversee an autonomous vehicle development program, amid a rally in global equities.

The index is up 4.4% in the past 24 hours.

India’s finance minister said he would nominate an AIAA chairman, with the finance ministry having given the group a deadline to name a new CEO by March 6.

The AIAA is expected to nominate the new CEO at a meeting on Feb 1.

The AIAA said the committee would also meet to decide on the formation of an autonomous vehicles development committee and the formation and management of an AIADMs self-driving vehicle development center.

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