Mad ! Mad ! Mad ! Monday…Markets hit Upper Circuits again…Trading halted for the Day !

At 11.55 am,The BSE and NSE reopened after a two hour cooling period after hitting circuits on opening at 9.55 am

I’m not even in Mumbai…in Ahmedabad and feeling the Heat in more ways than One !

At 11.55 am the Sensex hit it’s second Upper Circuit at 14272.63,up 2099.21 points from Friday’s closing….up 17.24%

The Nifty hit 4308.05,up 636.40 from Friday…up 17.33%

As is the Policy ,the Markets have been now halted for Trading for the Day…This is unprecedented in our Market History

In seconds the Volumes had hit Rs 3000 crs…..My Heart goes out to all of those who had shorted the Nifty or  stocks in Futures…They have not yet been able to cover and are facing massive losses and therefore serious margin issues…They may need to sell part of their portfolios to pay off brokers…Short Sellers have been Shorted !..and How !

Tomorrow Sell at these Strong Sensex Levels….15000 +?…so quick…so soon…so much of euphoria !…it’s like the Markets were drying with the drought of 2008 and had began to recover…now the recovery is with such wet vengence on election results and  with the onset of monsoons now !…There is a GOD above…..but he’s now beginning to tell us to “Sell” !  

4 thoughts on “Mad ! Mad ! Mad ! Monday…Markets hit Upper Circuits again…Trading halted for the Day !

  1. This is what all we thinking sir but pls tell now by psu goes public or disinvestment take place what are the chances of dffict budget goes down. If some how upa take decision on these process market can touch 21 k level . As of BRIC country , we never outperform but as i says to my client in near future we can beat them . is that time come or it knocking in our door in 2 – 4 year time.

  2. I’m in Chicago and feeling the heat in under 20 Celsius weather!

    “During 60 seconds of trade today — first for 30 seconds at the opening and then another 30 seconds after trade resumed at 1155 hours — investors’ wealth measured in terms of total market capitalisation of all the listed companies grew by about Rs 6,50,000 crore. This is the biggest ever gain in the history of stock market, not only in India, but possibly in the entire world. “

  3. Dear Gautam,

    At some point in time Valuation will have to come into play and this as you know would largely flow from Earnings Growth

    However see how perceptions change overnight on macro valuations riding on such sensational Election Results

    With an aggregate Sensex EPS for FY 10 expected to be maintained at 850 levels and show no growth and if PE Multiples again rerate back to 20 times it’s a Sensex level of 17000…Now if there’s a Earnings growth rate of 15% as interest rates ease and the Sensex EPS moves closer to 1000,then it will give you a Sensex Level of 20000 at this PE rerating of 20 !

    And as Arzan has so strongly observed that the Market Cap has zoomed a record Rs 650000 crs in seconds this morning,just about anything is possible !….Those who think they have seen it all,think again !

    With Monies waiting to pour into Equities…with Congress not really now expecting to be impeded in the Reforms Process,clearly the Optimism is not misplaced…These were completely unexpected Election Results that has cleared the road ahead for Congress

    One can breathe ,feel and live this Excitement and Anticipation in our Markets

  4. Hi Gaurav Sir,
    was an interesting day yesterday. The markets opened for just 22 seconds and was virtually a no trading day. Overheard someone saying that while the markets were up 17%, their own portfolios were up just 15%. Didn’t know whether they should be happy or sad, 🙂 .

    I loved the previous two articles for mostly 2 reasons. One, “what to sell part” (when news are showing just what to buy) and second the numbers and reasons given in the previous comment (rarely do we see reasons, no?).

    The left is out, and everyone is feeling left out.

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