Indian Stock Exchange halted after 17 % surge

Discussion in 'Wall St. News' started by ASusilovic, May 18, 2009.

  1. May 18 (Bloomberg) -- India benchmark stock index posted a record gain, prompting exchanges to halt trading for the rest of the day, after Prime Minister Manmohan Singh’s election victory. The rupee jumped the most in two decades and bonds rose.

    The Bombay Stock Exchange extended its suspension for the rest of the session for the first time ever, shortly after a two-hour halt ended at 11:55 a.m., according to the stock exchange Web site. The Sensitive Index, or Sensex, had surged 2,099.21, or 17 percent, to 14,272.63.

    “Markets are euphoric,” said Rahul Chadha, the Hong Kong- based head of Indian equities at Mirae Asset Global Investment, with $46 billion in global equities. “The focus by federal and state governments on development will lead to a structural re- rating of India.”

    Singh’s ruling Congress party won its most seats since 1991. The victory will enable the party to start forming a new government today without needing the support of communist lawmakers, who frustrated plans to entice foreign investment and sell state-owned companies in his first five-year term.

    Under exchange rules, trading closed for the day at both exchanges because the Sensex jumped 2099.21 points while the S&P CNX Nifty index jumped 636.40 points. The Nifty climbed 17 percent to 4,308.05. The markets were halted for the first time ever after breaching an upper limit.

    Holy moly !:p :) :D
  2. its not 17%. its 20%

    Attention Members

    SEBI vide their Circular No. SMDRPD/Policy/Cir-37 dated June 28, 2001 has stipulated that the index based market wide circuit breaker system shall apply at three stages of the index movement either way at 10% (300pts), 15% (450pts) and 20% (600pts).

    Since the indices breached the 20% level, the markets will be closed for rest of the day.

    There will be no post close session for the day.

    Date : May 18, 2009
  3. Election results in emerging markets tend to do this. Not just India.
  4. I can't believe it; it happens all the time. I put money in India (INP) last Monday, withdrew it Thursday, only to see I could've gotten 17%.

    Maybe it's a good time to short it! :D

  5. lol, please do short, we need someone actually to sell :) Most of the money is coming from FIIs who is sitting on large cash.
  6. well, its the first time in the history of India.