Investors go richer by Rs 6.5 lakh cr in 60 seconds on 18th May,2009

Brokers celebrate outside the Mumbai stock exchange on Monday(18th May,2009).

Investors have become richer by a whopping Rs 6.5 lakh crore in just a minute as the Bombay Stock Exchange Sensex saw a historic 2,111 point rise to the 14,000 level as the markets cheered the decisive win of the ruling UPA government in the Lok Sabha elections.

Investor wealth, measured in terms of the combined market capitalisation of all the listed companies, increased by over Rs 6,56,477 crore in a minute -- in the first 30 seconds and then after the resumption of trading at 1155 hours -- to Rs 44,63,420.97 crore.

The 30-share Bombay Stock Exchange Sensex zoomed 1,305.97 points at 13,479.39, hitting the upper circuit within seconds of opening of trade, following which trading was halted for two hours. After trading resumed the Sensex soared 806 points at 14,284.21, following which trading was halted for the day.

Further, the 30 Sensex companies, which account for over 47 per cent of the total market capitalisation of all the firms, saw their combined market valuation rise by over Rs 3.16 lakh crore today.

The combined market capitalisation of the 30 blue-chip stocks rose to Rs 21,53,590.09 crore on Monday, from Rs 18,36,841.33 crore at the end of trade on Friday.

Reliance Industries was the major contributor to Monday's increase in market capitalisation for regaining the 14,000 level along with other heavy-weight stocks like BHEL and Bharti Airtel.

Onlookers watch share prices on a digital stock ticker outside the Bombay Stock Exchange (BSE) building in Mumbai on Monday.

Main stock market is booming after the people gave a thumping mandate in favour of the Congress-led United Progressive Alliance (UPA) in the Lok Sabha polls, dispelling fears of a fractured mandate.

The main stock market leapt by nearly 15 percent on Monday, triggering a temporary trading halt, after the ruling coalition sealed a decisive election victory that calmed fears of political uncertainty.

The Indian rupee gained by moving more than two percent to four-month highs against the dollar while the benchmark bond yields fell as the win boosted hopes a strong coalition would be able to push through economic reforms that would boost the much needed foreign investment in the country.

The investors and market analysts are upbeat and believe that the Congress-led UPA government will push the reforms needed to boost the economy in times of recession and will provide a stable government.

“I am overjoyed for the simple reason that we have been facing a lot of problems for the last two years when the market was down. The government has come with a thumping majority and the government will come up with further reforms. They will come up with banking reforms, they will come up with infrastructure benefits, and they will come up with public sector divestment. So the overall trends for the long term market are bullish, because the government will rule for five years,” observed Manish Debrawal, a Market Expert.

The investors are hopeful that the Congress led UPA will now fast track the process of economic reforms without any pressure, which in turn will boost the economy.

“When in 2004 the UPA government was formed with the Left Front support, then because of the Leftists, the markets had fallen by over 800 points. The picture is completely different in today's scenario. The new government will be without the Lefts' support. So the reform bills in the insurance, foreign direct investment and banking sector which had been blocked by the Left will now be tabled and passed in the parliament, which is very good for the overall economy and from the market point of view,” opined Siddharth Kuwala, an investor.

Brokers celebrate outside the Mumbai stock exchange in Mumbai on Monday.

Mumbai Dalal Street witnessed its best-ever post-election rally in history with the benchmark index jumping over 2,110 points or 17 per cent on the first trading day after the announcement of the Lok Sabha election results.

In the general elections in May 2004, the market did not expect the defeat of the BJP-led National Democratic Alliance and the Congress-led coalition had to take the support of the Left parties to form the government.

The election results were announced during the trading hours on May 13 and the Sensex had ended up 0.8 per cent after highly volatile trade, but lost 6.1 per cent the next day.

In the following trading session on May 17, the index plunged as much as 11.1 per cent, its biggest drop in 12 years, on fears of a Left-backed government.