The one-sided win for the UPA government (lead by 262 seats) in the 15th Lok Sabha election, which shrugged off the exit polls results drastically, brought great cheers for the markets in early trade. The benchmark indices locked at upper circuit. The BSE & NSE are in discussion on extent of trading halt, as the Nifty has already breached second circuit (i.e. 15%).

In the first 30 seconds of trade, the Sensex crossed the 13,000 mark. This was the first time since October 2008 that the Sensex surpassed the 13,000 mark and the Nifty crossed the 4000 level. Huge upsurge of 420 points or 11.4% in the SGX Nifty was suggesting the same trend.

The 50-share NSE Nifty was up 531.65 points or 14.48% at 4,203.30 and the 30-share BSE Sensex surged 1305.97 points or 10.73% to 13,479.39. Less than Rs 1000 crore of trade was seen in the cash and F&O segment.

SENSEX: 13479.39 (+1305.97)
NIFTY: 4203.30 (+531.65)

Update: Market will be re-open at 11:55 AM (2 hr after upper circuit)

The BSE Realty Index shot up 15.84% and Bankex gained 13.63%. Among other, Capital Goods, Power, Metal, Oil & Gas and TECK indices rose 10.5-12.83%. IT, FMCG, Healthcare and Auto indices went up 4-9.64%.

Among the broader indices, the BSE Midcap Index was up 7.25% and the Smallcap Index gained 5.10%.
Reliance Industries was up 20%. Sun Pharma, HDFC, ICICI Bank, L&T and DLF gained 19-20%. Tata Communication, Hero Honda, Unitech, Grasim, ABB, Reliance Petroleum, Suzlon Energy and Axis Bank surged 17-18.8%.

Reliance Capital, Ambuja Cements, Sterlite, Reliance Power, Bharti Airtel, SBI, HDFC Bank, Reliance Infrastructure, Reliance Communication, TCS, SAIL, Infosys and Power Grid Corp were up 15-16.8%.BHEL, Siemens, ONGC, Tata Motors, Idea Cellular, Tata Steel, M&M, Ranbaxy Labs, NTPC and ACC shot up 10-14%.

What is a circuit breaker?
It is a system to curb excessive speculation in the stock market, applied by the stock exchange authorities, when the index spurts or plunges by more than a fixed limit. Trading is then suspended for some time to let the market cool down. If the market changes more than 10%, trading is halted for one hour, more than 15% trading is suspended for 2 hours. Although introduced in November 1992, it was used for the first time in the Bombay Stock Exchange on Tuesday, 9 March 1993 when the Sensex declined by more than 5% from the opening level, i.e. from 2451.20 to 2318.26. At that time, the circuit was 5%.

Update: Trading halted for the day as market hits upper circuit again (two times).

SENSEX: 14272.63 (+2099.21)
NIFTY: 4308.05 (+636.40)

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