The Indian Stock markets broke all records and rallied of an unexpected 2,111 points in just a single minute of trading, forcing authorities to shut down the counter for complete day.Eager buyers were left gaping and thinking and the day was over even before they could formulate their thoughts of a buy order in a uncontrolled market that witnessed an appreciation of Rs 6.5 lakh crore in market capitalization as the BSE-Sensex moved upward to 14,284.21 points.
Trading was first halted at 09:55 am for two hours and subsequently for the day within 30 seconds of commencement each time because of buying frenzy, a sentiment that was in sharp contrast to a panic selling-driven halt in trading around the same time in 2004 days before UPA came to office.
The story was same at the NATIONAL STOCK EXCHANGE also, where within a minute of trading in two sessions saw prices breaching all records of a single day jump, although transactions were limited. NSE's Nifty closed the day higher by 651.5 points at 4,325.15 points. Share of less than 1000 companies could be traded on both exchanges with turnover of just Rs 300 Cr.which is only 2 percent of their daily average transactions.
Circuit breaker is a mechanism, wherein trading is automatically halted for one hour if the benchmark indices rise or fall by 10 per cent of the closing level of the last quarter. A movement of 15 per cent halts the trading for 2 hrs and movement of 20% on either side halts trading for whole day.
Market leader RELIANCE (26.43% change) was singularly largest gainers with appreciation of Rs. 70000 Cr. for their shareholders followed by UNITECH (26.59% change) BHARTI AIRTEL (25.42% change) and DLF with net change of 25.03%,while few unfortunate scripts like K Sera Sera, Cinemax India and Adhikari Brothers TV that lost value.
While concluding the topic it can be considered this unusual movement of market response was a response to the UPA getting a new term in office and the stability that comes along with it in terms of pursuing reforms without having to bother about LEFT parties like in the past coz now it is clear that LEFT is not left any more.
All this is an artificial rally fueled by speculative buying. But whatever happened in the market is not good. The economic atmosphere in the world as well as India has not changed. Today India is one of the most costliest markets among emerging markets and prices have to cool off before money starts to flow in.
Comments are Welcome.
Trading was first halted at 09:55 am for two hours and subsequently for the day within 30 seconds of commencement each time because of buying frenzy, a sentiment that was in sharp contrast to a panic selling-driven halt in trading around the same time in 2004 days before UPA came to office.
The story was same at the NATIONAL STOCK EXCHANGE also, where within a minute of trading in two sessions saw prices breaching all records of a single day jump, although transactions were limited. NSE's Nifty closed the day higher by 651.5 points at 4,325.15 points. Share of less than 1000 companies could be traded on both exchanges with turnover of just Rs 300 Cr.which is only 2 percent of their daily average transactions.
Circuit breaker is a mechanism, wherein trading is automatically halted for one hour if the benchmark indices rise or fall by 10 per cent of the closing level of the last quarter. A movement of 15 per cent halts the trading for 2 hrs and movement of 20% on either side halts trading for whole day.
Market leader RELIANCE (26.43% change) was singularly largest gainers with appreciation of Rs. 70000 Cr. for their shareholders followed by UNITECH (26.59% change) BHARTI AIRTEL (25.42% change) and DLF with net change of 25.03%,while few unfortunate scripts like K Sera Sera, Cinemax India and Adhikari Brothers TV that lost value.
While concluding the topic it can be considered this unusual movement of market response was a response to the UPA getting a new term in office and the stability that comes along with it in terms of pursuing reforms without having to bother about LEFT parties like in the past coz now it is clear that LEFT is not left any more.
All this is an artificial rally fueled by speculative buying. But whatever happened in the market is not good. The economic atmosphere in the world as well as India has not changed. Today India is one of the most costliest markets among emerging markets and prices have to cool off before money starts to flow in.
Comments are Welcome.
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ReplyDelete