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 has been halted for two hours now.
The Bombay Stock Exchange’s 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.
The Bombay Stock Exchange in a statement said on Monday morning that that trading has been halted because market has hit index based market wide circuit filter limit.
The market wide circuit breakers would be triggered by movement of either Sensex or the NSE S&P CNX Nifty whichever is breached earlier.
In case of a 10% movement of either of these indices, there would be a 1-hour market halt if the movement takes place before 1 p.m.
In case the movement takes place at or after 1 p.m. but before 2.30 p.m. there will be a trading halt for hour.
In case the movement takes place at or after 2.30 p.m. there will be no trading halt at the 10% level and the market will continue trading.
In case of a 15% movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1 p.m. but before 2 p.m., there will be a 1 hour halt. If the 15% trigger is reached on or after 2 p.m. the trading will halt for the remainder of the day.
In case of a 20% movement of the index, the trading will be halted for the remainder of the day.
