Sensex hits upper circuit

Bulls came roaring this morning, as the BSE benchmark index, the Sensex, zoomed from circuit-to-circuit in a matter of few seconds.The Sensex opened with a huge gap of 1,306 points (10.7%) at 13,479, this morning following a near-clear mandate for UPA in the recently concluded Lok Sabha elections. Trading was suspended for two hours, as the index zoomed 1,790 points (14.7%) to 13,963. As soon as trading resumed at 1155 hrs, the index surged to 14,273 - up 2,099 points (17.2%) - and trading was suspended for the day.(As per a Sebi circular, the stock exchanges calculate circuit limits on a quarterly close basis. These percentages are translated into absolute points of index variations (rounded off to the nearest 25 points in case of SENSEX). On March 31, 2009, the last trading day of the quarter, Sensex closed at 9709. A 20% rise from this level, translates to 1,942 points. Hence, the Sensex hit the upper limit after the index absolute points gain rose over 2,000 points.) Hopes of a stable government at the Centre for the next five-years, and positive moves such as stimulus and reforms taking place during this period have boosted the sentiment.
Life in a way has come in full circle for the UPA. In 2004, when the UPA coalition came to power, the Sensex hit its 10% lower circuit and tanked over 11% eventually. Today, however, the index has done a complete vice versa, the index has hit its 20% upper limit and has closed for the day.
The change in fortunes is for obvious different reasons, last time around a coalition government backed by Left support was coming into power, while this around it's an almost majority UPA government coming to power.The BSE Mid-cap index zoomed 12% to 4,266, and the Small-cap index soared 9% to 4,669.
Only 846 stocks were traded today - 833 stocks advanced, 11 declined and two were unchanged.

A force never before witnessed in the history of markets—anywhere in the world—when stocks, bonds and the rupee went nuclear on the back of a dramatic electoral mandate for Manmohan Singh and the Congress. For the first time ever,the BSE,which was founded in 1875, had to halt trading for the day when the 30-scrip sensex skyrocketed by 2,111 points, or 17.3%, in the space of a minute, give or take a few seconds—making investors Rs 3.6 lakh crore richer. In both absolute and percentage terms, it was a record-smashing performance—shading by almost 1,000 points the previous biggest single-day rise of 1,140 points on January 25, 2008. It was the same story on the National Stock Exchange, except that the rise there was even sharper at 17.7%. It was almost as if the stock market was trying to reach the moon in the time sprinters take to cover a hundred metres. The sensex which, after a precipitous fall from over 21,000 points in January 2008 to below 8,000 in October 2008, had recouped 26% from the beginning of this year until election-eve, has overnight extended its gains to 48%, taking it from last to first among the BRIC (Brazil, Russia, India, China) countries, and pollvaulting it to the best performing index in the world (barring Peru).