Markets create history

Markets have stopped trading for the day as the benchmarks hit the upper circuit as soon as the trade resumed. The upper circuit was breached twice in the same day forcing the markets to be shut. The first upper circuit was reached in 15 seconds which forced the markets to close for an hour. The second time it opened the upper circuit was reached in 17 seconds forcing the markets to close for the day. This has happend for the very first time that two upper circuit was reached on a single day. Upper circuit and lower circuit is kept so that the market doest move up or move down to quickly.

The markets crossed the 14k mark. The markets went up by 2100 points on a single day. This has happened mainly due to the elections results that were announced on saturday. The results shows signs of a stable government headed by congress. With no other party gaining significant number of seats the day to day activites will be completely controlled by a single party. 

Markets had previously worried that gains by smaller regional parties would weigh on the already large fiscal deficit. However, despite the strong support to the UPA government from voters, it is likely to have a tough job in bringing back the economy back on track.

So what should investors do in such a market. It would be adviced to stay away from it till the markets settle down. However, this is a good time for traders. They couldnt play a big role today as the market was open only for a couple of minutes.

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