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SEBI keeping close watch on bourses: Chawla

NEW DELHI: Even as the Bombay Stock Exchange 30-share Sensex and the 50-share National Stock Exchange Nifty on Monday soared to dizzy heights in a frenzy to hit the upper circuit and trading was halted for the day, the Finance Ministry assured investors that market regulator Securities and Exchange Board of India (SEBI) was closely monitoring the stock price movements.

Speaking to the media here on the historic and unprecedented 2111-point rise in the Sensex during the one-minute-long trading session, Finance Secretary Ashok Chawla said: “It was expected that markets will do well and that is what we saw in the morning. SEBI is keeping a watch on the situation. We will see how it plays out tomorrow”.

Trading on the two bourses was initially suspended for two hours after both the Sensex and the Nifty hit the upper circuit within a minute of the opening bells. On resumption of trading at 1155 hours, the Nifty zoomed to hit the upper circuit for the second time within a minute and the authorities closed the market for business for the day.

While the Sensex closed the day with a huge jump of 2110.79 points at 14284.21, the Nifty posted a massive gain of 651.50 points at 4323.15.

Describing the frenzied movement in the markets as “nothing unusual”, Mr. Chawla said: “It is widely believed that the response in the market place is going to be favourable…that is what the market indicated in the morning. It is not surprising, nothing unusual”.

As for the likely impact of the unprecedented stock market surge on the country’s economy which has been witnessing a slowdown in the wake of the global turmoil, the Finance Secretary said: “It is a good sign, but we would of course have to watch that we don’t have too much volatility [on the bourses]”.

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