Quite a historic day for our markets because the highest ever volumes got traded today. Rs 135,000 crore of trade, cash and futures market, that is staggering. The reason for that squarely is that we have had one of the most volatile sessions, we have seen in recent times.
Early in the morning the market was up 600 points, within a whisker of that 18,000 mark and then within 45 minutes it had given up all its gains, all 600 points went and the Sensex had dipped into the red.
By the time we closed trade of course, it had bounced back to close more than 500 points up. So, that has been the journey today, absolutely zigzag. 600 up, 600 down and then back up 500. So, a 1700 point zigzag journey if you catch all ends of it for the Sensex today. Even the Nifty has been extremely volatile and the volumes are large.
But the breadth has disappointed. As soon as the volatility hit the market, the midcaps started correcting and we ended with fairly negative advance-decline ratios today.
But having said that, the screen was lit up by some fairly sparkling performances. First from large caps like DLF, because of their Bangalore order, that stock had a phenomenal 15 per cent move on its large market cap.
Power as a sector continues to wow. We have had some amazing performances from stocks like Tata Power, Reliance Energy, NTPC, and Suzlon and technology is finally in the midst of a bit of a rally before the results come in, starting next week, Infosys leading the pack today, getting above that 2,000 mark after a long time.
There were a few interesting movers, stocks like Lanco, IVRCL, Nagarjuna Construction, in that whole infrastructure space, and of course there was some correction in many of those liquid midcap names like IFCI, TTML, Ashok Leyland, Petronet LNG, those liquid futures and options names actually gave back some of their gains. But the day will be best remembered for that intense bout of volatility compressed in two hours of trade. But it ended very smart.
The volatility got induced by two factors. One of course was that the Hang Seng market had a big U-turn during the course of the day, and the Hong Kong market has been a sort of a leader in this run for the Asian market pack. Hang Seng corrected and that dragged down sentiment out here.
And there were completely unsubstantial rumours of a possible CRR hike by the RBI because of the immense flows we are seeing into the market and both have those might have contributed to the volatility today.
Let us see how tomorrow is like. Watch the Hang Seng and the Asian markets close tomorrow morning, because if all goes well, we are within shouting distance of another landmark, which is 18,000 for the Sensex.
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