For the first time in the history of Indian stock markets, trading was halted at the upper circuit one minute after trading began on Monday in reaction to the United Progressive Alliance’s impressive victory in the general elections.
Trading was then been halted for two hours, but as soon as the market reponed the indices hit the upper circuit again, and trading has been halted for the entire day today.
Upon resumption of trade at 11.55 a.m., the Bombay Stock Exchange’s Sensex rocketed up by 2,110.79 points at 14,272.63, up 17.34 per cent. The National Stock Exchange’s Nifty shot up by 636.40 points, or 17.77 per cent, at 4,308.05
The S&P CNX Defty is S&P CNX Nifty measured in dollars. This index hit the upper circuit of 20.53%, leading to a halt in trading for the entire day.
Earlier in the day, the Sensex opened 10.73 per cent or 1305.97 points higher at 13479.39. The National Stock Exchange’s Nifty was locked at 4203.30, higher by 14.48 per cent or 531.65 points.
All sectoral indices shot through the roof with the banking sector leading the rally.
With the air of political uncertainty clearing up with the triumph of the United Progressive Alliance, the bulls have returned to the bourses with a bang.
The mood in the market is euphoric and most analysts and market observers believe that the Sensex might rise to 14,000 by the time the new government presents the Union Budget.