Welcoming UPA's win in the general elections, Indian markets opened on a very upbeat note triggering off circuit breakers for the first time ever.
The markets surged nearly 15 percent within seconds of opening on today, triggering circuit breakers that halted trade for two hours as investors celebrated a sweeping election victory for the ruling coalition.
The markets further extended their gains, immediately on re-opening after the two hour halt, which triggered the final circuit breaker that shut trade for the day.
It was the first time a circuit breaker has been set off by a rise in the Bombay Stock Exchange (BSE), a spokesman said.
The benchmark 30-share BSE index rose 17 percent to 14,284 points, its highest since September 23, and the 50-share National Stock Exchange (NSE) index jumped 15 percent to 4,203.30, also an eight-month high.
Earlier, the BSE said its index had risen 11 percent before the halt.
"It is very surprising because the turnover was not much. It's very hard to understand how the circuit breakers have been triggered when the volumes are so low," T.S. Harihar, vice president at ICICI Securities, said.
Circuit breakers are set based on moves of 10 percent, 15 percent and 20 percent using the close to the previous quarter as a base. Triggering a circuit breaker in one market also closes the other.
The BSE index was up 1,790 points and the NSE index was up 532 points at the halt, both having crossed the 15 percent trigger limits.
When trade resumed, the BSE index extended its rise to 2,110 points and the NSE rose to be up 600 points on the day. The 20 percent limit was triggered and trade was halted for the day.
