MUMBAI: After the election results cleared the thick layer of uncertainly regarding the reform process, the equity markets reacted with an extraordinary feat, the Sensex vaulted 2,110 points in just two hours.

History was created on the stock markets when trading was halted for the day because the market-wide circuit was applied due to the surge. Earlier, there have been instances when trading was halted when marketwide circuit filters were applied due to market crash. Trading was halted at 11:55 a.m for entire day after the 20% upper circuit filter was activated by the stock exchanges. This is the first time in the history of the Indian stock exchanges that they were closed for the entire day due to circuit breakers. 

Consensus among dealers was that the market will hit first circuit break after the markets opened on Monday, but nobody expected it to breach all three circuit breakers and trading will be halt for the day...

Sebi guidelines mandates trading to be halted for the entire day if there is 20% movement on either side.

Sensex re-gained the September 2008 high on back on heavy buying in heavyweights like Reliance, ICICI Bank, L&T, Bharti and HDFC... volume, however, was extremely low - only Rs 3,200 crore.

RIL gained nearly 19% to Rs 2,350, the second biggest single day percentage rise in a single day since 1994. Reliance contributed 452 points to the Sensex gain of 2,110 points, which means 22% of the total gain came from Relaince.

The top five stocks, RIL, ICICI Bank, L&T, Bharti and HDFC, contributed 1,261 points, which is 60% of the total gains.

Sensex Rise : Key Contributors 
                                 Absolute Contribution        % contribution    
RIL                               452                                          21.42
ICICI Bank                  238                                          11.28
L&T                              229                                          10.85
Bharti Airtel                 173                                          8.20
HDFC                           169                                          8.01
Top 5                          1,261                                        59.67%

Analysts says that the election results will be a game changer for the market....fence sitting investors have now changed to fence hitters. The change in market perception is clearly reflecting in strategy reports, post election result. The crux of all brokerage reports was that political stability will lead to re-rating of the markets.

Morgan Stanley, which was quite cautious on the Indian market, has now said that the Sensex could outperform emerging market over the next 12 months. The report has predicted a Sensex target of 15,300 points by December 2,009.

Mark Mobius of Templeton Asset Managment Company said this is the foundation for the next bull run...

Ramesh Damani said the markets may open with a positive gap of 5% on Tuesday but cautioned that it is time to look at fundamentals and valuations...

Analysts add that the markets can continue its rally as the Sensex is valued at 15.6 times forward earning, twice the 7.7 muliple of November but still lower than China or Brazil...