Golden Monday

On 16th May,2009 after result declared of General Elections in the evening Election process completed for India’s 15th Loksabha and because United Progressive Alliance (U.P.A.) get almost clear majority no doubt it is short of ten seats but considering the fact that it had completed full five year term in the office despite having 217 seats and short of 55 members in the Loksabha courtesy left and latter on Samajwadi Party both supported them unconditionally from outside and not join them in Government , So considering the fact this time Indian National Parties get more chunk then from there regional allies and mandate was for stability which will be crucial and important for U.P.A. alliance to take major decisions as per there agenda, it was evident that now all around in India in every sector stability will boost business especially market’s which attract investors and financial Institutions only at the time of stable Government and it was very interesting to see how market react towards stability when on 18Th May,2009 Market’s open after break of two days, everybody can’t believe the way market moves because after opening within seconds it create history of it’s 133 years old existence and both market Bombay Stock Exchange and National Stock Exchange trading had to be suspended for the day because of Upper Circuit limits.
Now what is Upper Circuit and when it’s comes to effect? Well as per Security and Exchange Board of India’s norm when market cross ten percent of trading then trading suspended for one hours and if it cross fifteen percent then trading stop for two hours but if it touch twenty percent then no more trading on that particular day and percentage of circuit is fixed on last day of trading at the point sensex closes of every quarter and these percentage changed to numbers and for next quarter upper circuit is set and based on 31st March, 2009.
On 18th May, 2009 market opens at 10a.m. at its usual time when trading stared and within some seconds of it’s trading it cross the mark of 1305 when first Upper circuit comes into effect then after opening at 11.55a.m. second time upper circuit halt the market trading as it’s touch the mark of 784 point and it total zoom upwards with 2100 points, Same story was seen at National stock exchange where after opening at 10.00a.m. in seconds cross 521.20 points and upper circuit comes into effect then after one hour when it start trading again second time because of upper circuit trading stop and in it’s next opening after one hours trading stop because of upper circuit when it touches 15.10 point. Bombay Stock Exchange closes at 14,272.63 after registering rise of 2,099.21 points in intra day trading which was 17 percent and National Stock Exchange closes at 4,323.15 after gaining 651.50 points which was 20 percent and experts are bullish for future of markets when they analysis of very first day of trading after the election process and people’s clear verdict to this Government which is a very good sign as it will attract more and more International Investors and financial Institutions to consider India as one of the very few safe ,viable and profitable market in the time when throughout world countries are coming with negative growth not only by developing countries but by the developed countries of the world which are making investor community suspicious and reluctant as developed countries especially America’s Banks and auto sector effected badly and lot of bank closed and auto sector had registered negative growth resulting newly elected in the month of January 2009 Mr. Barrack Obama government of United States of American pass on stimulus package just to avoid both sectors well known famous companies and groups not to fall in the clutches of bankruptcy which will have direct impact on America’s economy.
So to deduce the Golden Monday movement it will be wise to see cautiously markets as in the past Indian small (retail) investors had burn their fingers badly two times because of inside trading by some brokers which resulted false surge in particular shares and when dust settled down small (retail) investors was at the loosing side where he helplessly watched his hard earned money drowned. It’s not that we have to look it negatively but it’s better to step safe and sound in our actions