In a single day, the Sensex added 2,000 points. This sudden escalation in the index was the result of the tremendous faith the people have reposed in the UPA government. Indeed, history has been created.

WHAT A spectacular day to start the week with. Everyone predicted that the Sensex would soar some 500 points but no one thought that it would create history.

After the election results were declared on Saturday, the markets opened for the first time on Monday (May 18). Within few seconds, the Sensex got locked in its 10 per cent upper circuit. As a result, trades got aborted for around two hours. However, the markets again reopened at 11:55am to resume trades. The bulls however were in no mood to settle down; the index touched its second circuit at 20 per cent and got closed for the day.

In one single day, the Sensex added 2,000 points. This sudden escalation in the index was the result of the tremendous faith the people have on the UPA government. This same party when it had come to power in 2004, the Sensex then tumbled and had reached its 10 per cent lower circuit. At that time, the UPA government came to power with the help of the Left, but this time, the case is different, it has been successful in getting an absolute majority – well, almost. The sudden billow in the Sensex shows the tremendous faith of the people in a stable government.

On May 18, history was created. This day would be remembered for a long time. For the very first time the Sensex touched upper circuits and that too, twice in a day!

Few days back before the election results were declared, the Sensex had accumulated some points as their were rumours in the market that the NDA government will come to power

Realty and the Bankex indices were the major pullers for the Sensex. The Realty index surged 23.5% to 2,969 and the Bankex zoomed 20% to 7,598.

 
Winners of the day:

 
BHEL skyrocketed 33 per cent to 2,266. Larsen & Toubro zoomed 30 per cent to 1,280.
 
DLF, ICICI Bank, HDIL, Reliance Communications, Bharti Airtel, Reliance Infrastructures and SBI added 21 to 26 per cent.
 
Market breadth:

The market breadth was highly positive, in such a short span of time, 846 stocks were traded, of which 833 advanced and only 11 declined.
 
Value & volume buzzers:
 
Reliance topped the value chart with a total turnover of Rs 8 crore. It was followed by Larsen & Toubro (Rs 4 crore), Unitech (Rs 3.32 crore), ONGC (Rs 3.06 crore) and Reliance Infra (Rs 3.04 crore) on the BSE.
 
Gateway Distriparks topped the volume chart with trades of around one million shares. It was followed by Cals Refineries (661,700), K Sera Sera (581,750), IFCI (547,737) and Unitech (536,533).
 
Thus the Sensex made a stupendous rally of 2,111 points (17 per cent) at 14,284.
The surge was expected, but as it closed down so fast, most participants failed to benefit from it. Some, however, feel that it was manipulated. Different versions have come up now to support the rally in the market.