Money on the markets
A maturing market amid the mayhem
The Sensex created history today, jumping more than 17 percent for its biggest single-day gain in almost two decades as investors cheered the ruling coalition’s election victory.
The benchmark hit the first circuit breaker a few seconds after opening. The second breaker came at 11:55 am and trade was finally halted for the day, with the Sensex closing 2110.79 points up at 14, 284.21.
Reliance Industries, ICICI Bank, L&T, Bharti Airtel and HDFC were the top contributors to the market surge.
Reliance Industries rose more than 20 percent and had the largest turnover of Rs 95.9 million.
Its market capitalisation rose from $13 billion to about $75 billion, on low volume of 41,096 shares.
Index heavyweight and top private lender ICICI Bank gained over 7 percent to close at 574 rupees. Its shares have gained 28 percent this year.
The benchmark was dragged lower by heavyweights Bharti Airtel, Reliance Industries and ICICI Bank.
The BSE Sensex closed 1.4 percent lower on Wednesday as investors booked profits ahead of the fourth phase of India’s general elections on Thursday.
The latest inflation data for early March may please authorities ahead of national elections. Political leaders will trumpet the fact that the government’s efforts have yielded results and the demon of inflation has finally been tamed.
But the early March number throws up some serious concerns. It signifies that the Indian economy has entered a phase of deflation for a temporary period. Demand in the economy is extremely subdued and fresh efforts are needed to restore confidence.
The Sensex closed nearly 2 percent down on Monday as worries over the world economy hit investor sentiments.
The benchmark closed at 8160.4, dragged down by index heavyweights Reliance Industries (down 1.4 percent), ITC (down 4 percent) and Hindustan Unilever (down 3.3 percent).