Market hitting upper-circuit on election result day in 2009

#1

As many already know, Nifty hit the upper circuit on 18/5/09, the day the election results were announced. Can people who were trading at the time throw some light on why it happened and what were the market sentiments were at the time (pre/post result)? Because as I recall, UPA coming back to power wasn’t really a huge surprise, so doesn’t this type of thing usually happen when something unexpected takes place?
Also wondering whether there’s a chance of market hitting a circuit this time around, probably not, but one never knows…

@nithin @Karthik

#2

Back in 2009, the consensus was that it will be a hung parliament. Check this

So UPA getting 262 was a huge positive surprise. Also, the market was beaten down quite a bit in 2008 during the financial crisis.

This time, I don’t think there is any chance of an upper circuit, lower circuit if there is a hung parliament - you never know.

4 Likes
#3

Hmm okay. Fair enough.

#4

Wow comparing the opinion polls versus exit polls of 2009, it seems the exit polls were curated specially by stock market operators.