Monday, May 18, 2009
MAGICAL MONDAY MORNING!!!
I had never waited for Monday as eagerly as I waited for this Monday,18 May 09. Usually i hate Mondays as they come too quickly after Fridays. But being a Stock market enthusiast I was so desperate for the clock to strike 9.55 A.M because I was expecting that moment to culminate into something spectacular and which would be regarded as historic.
The Indian Stock markets lost no time in hitting the first circuit(10%) and in few seconds the Second Circuit(15%). As a result the trading had to be halted for 2 hrs as per the stipulations of market regulator SEBI. But were these two hours enough to cool the bulls??? It proved terribly less. When the trading resumed at 11.55 A.M in a few minutes the markets hit the 3 Circuit and hence trading was halted for the whole day. I can't find enough words to describe this meteoric rise which took the markets to levels which were considered distant a few months ago. The SENSEX had breached 14000 mark and NIFTY FIFTY 4000 mark.At the close of the market hours SENSEX was up by 2110 points and NIFTY was up by 651 points.
One of the main reasons for such a rise was Short Covering as those who had bet against Congress were found Naked when the Anti Incumbency tide went away and had to scout for Cover. Indeces were high on wafer thin volumes because of huge demand at higher prices. As usual stocks like Reliance Group stocks,DLF,HDFC,ICICI,SBI,INFY,SUZLON,UNITECH,BHEL,L&T were the frontrunners among large Caps which sent the Indices roaring. Among Midcaps stock like GMR,PRAJ,Tier 2 Banking Stocks led the rally. It seemed that the traders were not getting enough of these stocks. BEARS WERE MAULED RUTHLESSLY by BULLS this time. Who could have imagined that at the time when Sentiments are not that high, an event like General Elections would take markets to such soaring highs.
All this was the aftermath of comprehensive victory of Congress in the General Elections in which it performed beyond wildest of expectations.Congress did exceptionally well in states of UP,West Bengal, Kerala and AP as a result of which now it finds itself in a very comfortable position. All those 2 sided allies are now wooing Congress so that they can get chunk of power at the center like SP,RJD etc. But the biggest reason which made the markets defy Gravity was the way in which LEFT FRONT was crushed. W.B and Kerala which were considered to be Strongholds of Left were taken by Trinamool and Congress respectively. Corporates and Market Analysts feel that with LEFT no longer in equation it would provide Congress much needed room to push for Reforms in Insurance sector, Disinvestment and also look beyond COMMON MINIMUM PROGRAM.
The main responsibility for congress would be reduce the Fiscal Deficit as any further deficit could lead to a ratings downgrade which would make raising DEBT from Global Banks very difficult. Secondly it should keep in mind that it is the COMMON MAN which has voted it again in power and even though LEFT is not there it should make COMMON MAN an inevitable part of its agenda where ever possible.
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- ▼ May (18)