During a notable special trading session on March 2, Indian benchmark indices, including the Sensex and the Nifty, reached record-breaking highs. Nifty opened tremendously at 22,400, while the Sensex soared to 73,982.12. The market activity was part of a special operation to evaluate the disaster recovery systems of the exchanges. The first half of the session saw a sideways trend within the 22,380-22,410 range, interpreted by experts as a consolidation pattern for future movements.
Despite the muted volumes, sectors like automobiles, capital goods, pharma, and cement experienced significant gains. Meanwhile, Avdhut Bagkar of StoxBox highlighted the Nifty 50 index’s surge to a new all-time high, indicating an uptrend that needed to maintain stability above 22,250 to confirm a buildup of long-term sentiment. However, Bagkar suggested that a lackluster second half could persist even though bullish instincts underpin the market.
The Bank Nifty index also showed signs of a rebound, closing over the 50-simple moving average, and predictions hinted at potential rallies towards the 47,500 and even 48,000 marks, contingent upon maintaining over these levels. Elsewhere in equity markets, the Nifty private bank index lagged a bit, while the India VIX, which measures market volatility, receded slightly.
Towards the end of the first special session, broader markets like midcap and smallcap indices also joined the uptrend, posting gains alongside their larger counterparts. Notable performances were observed in stocks of Hero MotoCorp, Tata Steel, Tata Motors, and Apollo Hospitals Enterprise, while Mahindra & Mahindra, NTPC, Grasim Industries, and Axis Bank experienced slight slides. Moreover, other stocks, including Tata Investments, Dwarikesh Sugar Industries, and Jubilant Industries, surged, although Gensol Engineering and Sigachi Industries fell by 5 percent each.
Subsequent to a break, the markets resumed for a second session from 11.30 am to 12.30 pm, again testing the robustness of the stock market’s emergency procedures. During this unique trading period, circuit filters were adjusted, allowing stocks to fluctuate within a 5 percent range, with the exception of those already set to a tighter 2 percent band.
Investors monitored the F&O segment along with the cash market, making careful analyses of the market dynamics post the special trading hours. The enthusiasm in the markets mirrored positive trends seen in the United States, where indices like Nasdaq and S&P 500 had recently achieved new record closing highs.
The extraordinary session aimed to ensure that exchanges like BSE and NSE are well-prepared for unexpected disruptions, providing a sense of security in the robustness of the Indian financial markets.