D- Day Arrives

The D-day has arrived and it would probably put an end to movement of markets just on the basis of expectations. Today by around 11 AM the scenario would be clear on the results front. Though it is been highly anticipated that the BJP led NDA Would form the Government, now a days the discussion is about how many seats they would secure. Hence as the clear picture arrives the market is likely to make big moves either side.

Now from the past two experiences it is important to know about the circuit limits in the markets. In 2004 there was a lower circuit and in 2009 there was upper circuit. This time the possibility of hitting circuits seems to be quite lower, however one should be aware of the same.

NSE-BSE Circuit Rules today:

• If 10% circuit till 1pm then market shuts for 45 minutes.

• If 15% circuit till 1pm then market shuts for 15 minutes.

• If 20% circuit anytime, market closed for the day.

• If 10% circuit from 1pm-2.30pm then market shuts for 15 minutes.

• If 15% circuit from 1pm-2.30pm then market shuts for 45 minutes.

• If 20% circuit anytime, market closed for the day.

• Post 2.30pm if 10% circuit market will continue trading but if there is a 15% movement post 2.30 pm then it is closed for the day. The circuit limits are applicable both ways, means upward and downward.

As for the movement of the market yesterday, equity benchmarks saw consolidation for the second consecutive session after record highs and ahead of Lok Sabha election outcome due today. The Sensex rose 90.48 points to close at 23905.60 while the 50-share NSE Nifty managed to hold the 7100-mark amid volatility, up 14.40 points to 7123.15. However, the broader markets underperformed benchmarks with the BSE Midcap and Small cap indices falling over 0.8 percent. This was exactly opposite to what happened day before yesterday where the mid cap and small Cap indices gained on the bourses.

Indian markets have been ignoring the global cues since few weeks. Today also the Indian markets are going to ignore the global markets cues. However the global cues are quite negative as yesterday the European markets declined more than one per cent as Euro Zone Q1 GDP growth was 0.20%. This was slower than the street estimates. Even the US markets witnessed a decline as the DOW closed in red with loss of more than 1 % and even the S&P declined 0.95%.  This gave the Dow and the S&P 500 their worst declines in more than a month. Reason was small-cap shares extended their retreat and Wal-Mart results disappointed.

The Asian markets are also trading in red with Nikkei losing more than 1.51% as Yen appreciated against the USD impacting the exporters. Hang Seng is down half a percentage point and the Shanghai Composite is down 0.10%.

SGX Nifty is also showing losses to the tune of 36 points (Down 0.51%). However as stated earlier the Indian markets today would ignore the global cues and focus would be on the election results. With some picture getting clear on the results front, markets would react accordingly. We would update the investors in our following market updates.