After witnessing high volatility key indices managed to close the day on a positive note mainly on the back of short covering ahead of the F&O expiry on May 29 and easing crude prices. The 30-share Sensex of Bombay Stock Exchange (BSE) yo-yoed in positive and negative terrain but gained momentum as the European markets opened in the positive, to end the day at 16,525.37 gaining 249.78 points or 1.53%. Meanwhile S&P CNX Nifty of National Stock Exchange (NSE) gained 58.55 points or 1.2% before finally ending at 4918.35.

Experts also attribute to Thursdays short rally to the easing crude prices, which would give some breather to the inflation due on Friday.

Hitesh Agarwal, head of research, Angel Broking, said, The markets opened on a flat note, but later gained momentum, after some short-covering ahead of monthly expiry of derivatives in the F&O segment. However, concerns of rising inflation still prevails in the investors mind. We are going to see more corrections in the markets in the days to come.

Of the Sensex pack, 23 stocks rose and seven fell on Wednesday. However the overall market sentiment remained slightly subdued with around 1,312 stock rising as against 1,358 stocks that declined and 86 stocks remained unchanged. On the derivatives segment, Nifty May futures ended with a premium of 14.65 points at 4,933 points. The open interest for the contract shed around 40 lakh shares to 1.9 crore shares. Among the sectoral indices, BSE FMCG index gained 98.37 points or 4.19% to close at 2,433.68, while BSE Metal index ended the day at 16,649.65, gaining 378.88 points or 2.33%. BSE IT gained 116.02 points or 2.61% before ending at 4,566.42 points.

Baring BSE Power and Capital Goods (CG) sector, other sectoral indices ended the day in the positive.