The markets have for the first time gone up up and away that to in a single day, hitting all 3 circuit breakers as most stocks especially in banking and real estate instantly notched up double digit gain. But behind all the euphoria lies a few facts that most people didn’t even realize.
Mkts did go up but on lower volumes, and due to the circuits people could not trade, and avg daily turnover dropped from 70000 crores to 2900 Crores.
Most people couldn’t either buy or sell anything once the circuits were triggered at 11:56 so this feels more a notional gain rather than actual gain.
Mutual funds declared it as a “non-business day’’ thus there was no NAV declaration, and anyone who traded yesterday will do so at todays NAV.
Sad bit was that most Indians couldn’t trade but most well informed resourceful investors took their trade to Singapore. One does wonder why people aren’t be allowed to trade against the circuit direction so that the cooling off period aids cooling off of the markets/ scrips.
The bear turned bull as we saw a sudden change in the stand of Shankar Sharma from extreme bearishness to sudden cautious bull when he said that the markets might go up 40% from yesterdays close. (though his estimated are good one musnt forget that he was a part of the tehelka episode and was rumored to be a part of the big bear cartel during the k10 days)
Is this a fools rally? …. Time will tell