On expectations the new government would speed up reforms and give the necessary thrust to boost the sagging economy, the bulls shrugged off weak global markets and thronged the major Indian bourses today. So strong was their presence that the benchmark indices Sensex and Nifty hit the upper circuit in a flash. While the Sensex shot up by over 10%, the Nifty flared up by more than 15%, forcing the market authorities to halt trading for a couple of hours.
And the trend was not any different when trading resumed at 11.55 a.m., The Sensex, which had moved up by 1305.97 points or 10.73% to 13,479.39 when trade was halted for the first time this morning, shot up to 14,284.21 immediately on resumption of trade a little before noon, recording an incredible gain of 2110.79 points or 17.34% for the day. The Nifty, which had flared up to 4271.40 at the bell, galloped to 4384.30 and was up 17.74% or 651.50 points for the session.
As the Nifty hit the 20% upper circuit barely a minute after trading resumed at 11.55 a.m., trading on both NSE and BSE was halted for the day.
For Sensex, this is the first close past 14,000 since 21st September 2008. The Sensex had closed at 14,042.32 on that day. The Nifty recorded its best close since September 10, 2008.
With no Left parties in the coalition and the Congress combine winning the polls by a handsome margin, it is now felt that reforms will get a much needed thrust and that the new government will go all out to provide the required stimulus to revive the sagging economy.
Stocks across the board hit impressive highs this morning with those from the realty, banking, capital goods, power, metal and oil sectors attracting buying at sharply higher levels.
All the sectoral indices moved up sharply. BSE FMCG, which moved up by a sharp 7.21% gained the least today. The Healthcare barometer surged 8.06%.
The Realty index spurted 23.45%. The Capital Goods barometer shot up by nearly 22%. The Bankex, Oil & Gas and Power jumped 19.18%, 19.11% and 18.33% respectively. BSE PSU and Metal surged by over 16%. BSE Teck, CD, IT and Auto climbed up 11.2% - 14%.
BSE Midcap and Smallcap indices rose 11.75% and 9.05% respectively. Among 846 stocks seen in action during the short duration of trade today, 833 stocks advanced and 11 stocks declined. A couple of stocks ended flat.