The benchmark stocks surge triggered trading halts within seconds of opening and reopening and forcing the market to shut down for the rest of the day. The unexpected election outcome surprised investors and short covering forced many brokers to scramble for a cover at the reopening. Rupee surges 3%.
Stock in Mumbai trading surged in a record one-day gain forcing stock exchanges to impose trading halts. The benchmark index Sensex opened up 10.7% and Nifty soared 14.5% and markets were quickly shut down for two hours.
The first trading halt was placed within seconds of trading and second halt was enforced after only 16 seconds of trading.
The unexpected magnitude of the surge forced brokers to cover shorts at the reopening and forcing the benchmark index to cross the trading limit for the second time. Stock exchange circuit breakers were in place for the second time and markets were closed for the rest of the day.
Since trading was light and less than 1,000 stocks changed hands on both leading exchanges, trading tomorrow is expected to be choppy and volatile tomorrow.
The Sensex index soared 17.4% or 2,110.79 to close at 14,284.21 and the CNX Nifty Index jumped 17.8% to 4,323.15. The trading volume on the BSE was only 77 crore rupees and only 846 stocks traded on the BSE and 202 on the NSE.
The rupee surged 3% to 47.77 and closed at 47.88 rupees to a dollar on the expectations of higher fund flows.
The prospect of a stable government led by one national party and hopes of speedier reforms jolted investors into action. The ruling coalition UPA led by the Congress Party won 262 seats of the 543 seats in the Lok Sabha election and needs 272 to form a government.
At close, the benchmark indexes Sensex and Nifty surged to a high last seen on September 19, 2008. For the year the Sensex is up 48% leading the world financial markets and markets of closely watched emerging nations with larger economies of Brazil, Russia and China.
Reliance Industries surged 20.6%, ICICI Bank gained 25.4% and DLF soared 16.6%. BHEL added 17.2%, State Bank of India surged 14.3% and Bharti Airtel gained 14.5%.
Sri Lanka Markets Surge on LTTE Defeat
The Colombo All Share Index surged 6.5% to 2,030.90 after President Mahinda Rajapaksa claimed victory over Tamil Tigers. The rebel group is labeled as terrorist group by India, U.S. and several European nations and was responsible for the killing of former Indian Prime Minister Rajiv Gandhi and several military and political leaders in Sri Lanka.
The 26 year war with the rebel group will be officially declared over in a speech to Parliament by President Rajapaksa on Tuesday at 9:30 AM Colombo time.
The Sri Lankan army also confirmed the killing of LTTE leader Velupillai Prabhakaran and his twenty five associates including chief of intelligence Pottu Amman who was behind the killing of Rajiv Gandhi.
The CSE All Share Index is up 35.4% for the year.
Asian Markets Review
The Nikkei 225 Index in Tokyo closed lower 226.33 or 2.44% to 9,038.69, Hang Seng index in Hong Kong increased 232.21 or 1.38% closed to 17,022.91, CSI 300 index in China higher 14.46 or 0.52% closed to 2,810.57. ASX 200 index in Australia decreased 37.60 or 1.00% closed to 3,735.60. The KL Composite index in Malaysia lower 2.20 or 0.22% closed to 1,012.01.
The Kospi Index in South Korea decreased 5.05 or 0.36% to close at 1,386.68. SET index in Thailand closed higher 6.30 or 1.18% to 540.22 and JSE Index in Indonesia increased 52.65 or 3.01% closed to 1,803.57. The Sensex index in India increased 2,110.79 or 17.34% closed to 14,284.21.
No comments:
Post a Comment