One trading day= Rs 3.62 lakh crore gain for investors

Written by Pradip Kumar Dey | Mumbai | Updated: May 20 2009, 05:07am hrs
After the election results were declared, investors have gained Rs 3.62 lakh crore in their wealth in a single trading session on Monday. The trading on the BSE and NSE has been halted for the full day as the markets hit the 20% circuit breaker after they reopened at 11.55 am. This is for the first time that trading has been halted for the full day on the bourses. The Sensex zoomed 2110.79 points, or 17.3%, to 14,284.21 points from Friday's level of 12,173.42. The Nifty touched 4,323.15, up 17.7%.

While banks, engineering, construction, NBFC, telecommunications, oil & gas, electronics, IT, and electricity stocks witnessed significant increase, automobiles, pharmaceuticals, cement & products, textiles, and FMCG were only marginally higher.

Madhabi Puri Buch, MD & CEO, ICICI Securities said, The mood of the moment is clearly upbeat. The impact of the results on the markets is clearly positive both in the short term and long term in the secondary markets and the primary markets.

In respect of the primary market, the new government would present the full budget, there would be clarity on the fiscal deficit. Interest rates would see stability thereby opening up the debt market. Possible disinvestment of PSUs to meet part of the fiscal deficit could see an additional impact in terms of giving the equity capital markets it first major IPO or FPO, she added.

Market capitalisation of banks registered a sharp increase. ICICI Bank gained a whopping Rs 14,717 crore from its M-Cap, an increase of 23% to Rs 78,670 crore over its May 15 level of Rs 63,953 crore. Axis Bank showed an increase of 20.3% in M-Cap, while SBI gained Rs 16,871 crore.

The aggregate M-Cap on BSE increased by a whopping Rs 3.62 lakh crore (9.6%) in a day, from the level of Rs 37.76 lakh crore as on May 15, 2009 to Rs 41.38 lakh crore as on May 18, 2009.

Kishor Ostwal, CMD, CNI Research, said: Market hit upper circuit as single government was a big surprise for market. PSU disinvestment is the only option. Maarket would be heading for 21000 in 12 months.

The market capitalisation of BSE A also increased by 16 % (Rs 5.34 lakh crore) in a day, from Rs 33.26 lakh crore to Rs 38.60 lakh crore during the same period.

Reliance Industries, the numero uno in terms of M-Cap, increased its value by Rs 64,683 crore during the study period. ONGC , increased its value by Rs 27,869 crore during the day. Among others, some significant increase in M-Cap on May 18 , were seen in major stocks like SAIL , gaining a whopping Rs 9,396 crore to its M-Cap, an increase of 18.6 % over its May 15 level at Rs 50,515 crore. Bharti Airtel showed an increase of 17.2% in its M-Cap. HDFC Bank gained Rs 8,262 crore to its M-Cap during the study period.

Some other IT stocks also showed an increase in M-Cap like TCS (13.3%), Wipro (12.4%) and Infosys Techno (11%). Some steel stocks showed bullishness. Consider Tata Steel , which increased by 16.5% or Jindal Steel & Power , which increased by 15.4 %.