Stock markets during Muhurat Trading on Diwali

#1
Stock Markets this Diwali:

With Diwali around the corner, it is an exciting period for stock markets. This time, the stock market has been celebrating its festival well in advance as both the indices the Sensex and Nifty - have had a cracker of a week scaling new landmarks of 20,000 and 6,000 since Jan 2008 and is all set to breach the marks of 21,000 & 6,200 through strong Foreign Institutional Investors (FII) interest.

SEBI has already given Diwali gifts to retail investors by doubling their bets on initial public offerings (IPOs) and raising the limit to Rs.2 lakh from Rs.1 lakh, thereby allowing investors to get more shares of good IPOs and reap out the gains on listing or otherwise. Moreover, now the investors dont need to go through the hassles of applying through different accounts.

Muhurat Trading since 2007:


2007: The Sensex fell 151 points in Muhurat trading on November 9 and closed at 18,907.60 compared to the previous close of 19,058.93. Despite disappointing investors on Diwali and the five-day downslide, the Sensex managed to record a gain of 3.43% in the one-month period preceding Diwali.

2008: Indices were down by more than 50% this year as compared to the closing price of 19,000 as recorded in the previous year. It was the worst year for the stock markets across the globe.

As a result of the market crash, many traders and investors in the once booming sector, who had booked luxury cars and plush apartments with bank loans, were struggling to meet their expenses including their childrens education and monthly grocery bills. An investor even said that I used to drive a Toyota Innova car, but nowadays I prefer to take a three-wheeler scooter to work.:(

Bringing good luck with it, the auspicious occasion of Diwali saw the Sensex registering a sharp 547-point rise bringing back some enthusiasm among investors; locked at 9,014 pts, the Nifty jumped by 132 points and ended at 2,656.

2009: Indian markets had been resilient than most other indices in the wake of the global financial crisis with the Sensex gaining more than 92.3% from last Diwali and ending at 17,326 pts with a gain of just 3 pts on the Muhurat trading.

2010: The special session, conducted to pay obeisance to Lakshmi, which also marks the New Year for traders as per the Hindu lunar calendar has all surprises packed for investors.

Analysts expect that Sensex may surpass 21,000 levels with the increasing FII interest in one of the worlds emerging markets, which will push the indices to new heights this Diwali to lighten the Indian homes. The listing of Coal India, touted as the biggest IPO ever, one day before Diwali will also support the indices.

Whether or not the Sensex crosses the psychological level of 21,000 during this Diwalis Muhurat Trading session is something that the entire investor community is waiting for with baited breath; the spirit must never die.:)
 

columbus

Well-Known Member
#6