was successfully added to your cart.

The Great Indian StockRush

Published on May 18, 2009

The Great Indian StockRush

May 18, 2009

Talk about 30 odd percent for S&P’s rush since march bottom, it looks pale when you compare with what happened in India (one of the component of  BRIC economies); a historical moment for Indian stock markets.

The Mumbai Sensex surged 17 percent to 14,284.21, while the Nifty soared 18 percent to 4,323.15 all within a day on Indian National Congress’s victory in India’s general elections. The rupee jumped 3.1 percent to 47.86 a dollar, the biggest advance since March 1986. The yield on the most-traded 6.05 percent note due February 2019 dropped 16 basis points to 6.27 percent in Mumbai, according to the central bank’s trading system.

Wow! A mad rush to buy “supposedly” cheap stocks on the notion of “stability” and “foreign capital” flooding the markets in the coming weeks. Within 30 seconds of market opening, The Sensex was scaling high and higher, Circuit breaker was applied two times before it was called a day to stop trading early. And imagine this, the market was suspended after only a minute of trading (Just FYI, those who think The Bombay Stock Exchange is an “Emerging Market”, it was founded in 1875!)

So here is what we go “Stability”, that’s the buzzword. This may bring some rating upgrades, increased confidence and flow of money. All is well till everything else is well.

Here in US, here is a list of Indian ADRS. Pre-market gainers include IBN (+31%), HDB (+18.5%), TTM(+13%), RDY (+11%), INFY (+14%).

Enjoy the gaps-up, looks for exhaustion and then some intra-day trading opportunities.

Profitable Trading, OP

Leave a Reply

Facebook IconYouTube IconTwitter IconFollow Me on Instagram