Sensex, Nifty locked at upper circuit; trading halted

[B. Karthick]

Equities were frozen at the upper circuit at open on Monday in
reaction to UPA’s phenomenal win at the general elections. All
sectoral
indices surged with banking spearheading the rally. Trading has been
halted for an hour.

Bombay Stock Exchange’s Sensex opened 10.73 per cent or 1305.97 points
higher at 13479.39 138.19 points to 12011.10. National Stock
Exchange’s Nifty was locked at 4203.30, higher by 14.48 per cent or
531.65 points.

Dinesh Thakkar, CMD, Angel Broking said, “The election results have
come as a positive surprise and are expected to go down well with the
markets considering that markets like continuity of government
policies, mindsets and ideologies. The UPA’s 250+ tally has managed to
beat the most optimistic political analyst on the street and this
‘thumping’ victory has set the stage for the Congress led UPA to come
back to power. Further, the possibility that the UPA could form the
government without the Left will further soothe investors’ nerves. The
markets are expected to rally as fresh money from FIIs and those
waiting on the sidelines on account of the political uncertainty,
makes its way into Indian stockmarkets. Investors must remain ‘long’
on India to take advantage of the long-term wealth creation
opportunities that Indian stockmarkets have to offer.”

B.Karthick
Research Analyst