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Trading On Trouble

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BUSINESS STANDARD
Last Updated : Jan 28 2013 | 12:29 AM IST

When news came through of the attack on Parliament, the Sensex promptly tanked 100-odd points in the next hour. Then it recovered 80-odd points as more sober damage-assessment was made and ultimately ended the day some 20 points down. It was an interesting exercise in watching news dissemination and market mechanisms at work.

For all intents and purposes, India has near-perfect trading systems and credible news is usually quickly available. The initial reaction was panic. When credible reports suggested that the fallout had been minimal, prices recovered.

In market-parlance, it was a

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