Hailing the decisive mandate to the Congress-led UPA, investors went into a buying frenzy, resulting in an unprecedented surge in the BSE Sensex, which rose by nearly 2,100 points and forced the authorities to suspend trading for the day.

Trading was suspended for two hours within seconds of opening of the market after the BSE surged by over 1,300 points hitting the upper circuit for the first time, and the authorities closed the floor immediately after trading resumed at 1155 hours. The BSE Sensex closed 17 per cent higher at 14,272.63. Echoing the sentiment, the NSE index also rose by 20 per cent, prompting the authorities to suspend trading for the day. In two bursts, the 50-share Nifty rose over 712 points, a buoyancy that led to an all-round appreciation in share prices, which marketmen say is the first of its kind. The BSE 30-share index zoomed to close at 14,272, up by nearly 2,100 points. The NSE index surpassed all the three upper limits of 10, 15 and 20 per cent, forcing the authorities to suspend trading for the day. Market participants were bullish because of the clear verdict of the people in the Lok Sabha elections, giving a clear majority to the ruling UPA, generating hopes that this would escalate economic reforms without any disruption. The rupee strengthening against the US dollar confirms that the stock markets will go up in the near term as FIIs would start buying. Investors said the surge in the markets was expected but the closure of the markets was so fast that most of the participants failed to benefit from the rally. The rupee and bonds rallied while gold fell as funds pulled out money to invest in other better options. Brokers said the jump in the indices triggered the first- ever freeze in trading after the "circuit-breakers" came into existence some 12 years ago.

The BSE Sensex had surged 26 per cent this year before today's rise.

The nation's benchmark stock index may surge as much as 20 per cent over the next week as overseas investors, who have purchased Indian shares of up to USD 3 billion in a month, may continue buying as they consider India to be the best among emerging markets. And this buying was mainly in infrastructure and core sector shares like cement and steel.