Indian bourses, bounced back on Thursday ending the five-day losing streak, on the back of strong global cues and some relief in the crude prices. The 30-share Sensex of the Bombay Stock Exchange (BSE) gained 536.05 points or 4.26% before finally closing the day at 13,111.85 points, while the broader S&P CNX Nifty of the National Stock Exchange (NSE) was up 130.50 points or 3.42% and closed at 3,947.20 points.
Markets analyst attributed Thursday’s recovery, to some fresh buying in banking, infrastructure and technology stocks and some short-coverings. The Sensex on Thursday opened higher with a positive gap of 334 points, but encountered some resistance in the form of profit booking in the early trades to touch the day’s low of 12,843.79. After that it shot up to touch the day’s high of 13,150.35 before closing at 13,111.85 points. The rally witnessed was secular and strong and can be gauged from the fact that though the Sensex ended with a gain of 536 points, its intra-day trading range (the difference between the day’s high and the low level) was only 306.56 points.
Deven Choksey, MD, KR Choksey Securities said, “Basically the markets were in oversold position for last few sessions, so there were strong indications for markets to bounce-back. There was also a positive indication in the form of crude prices easing down, which was one of the key reasons for the Thursday’s bounce-back. However, the overall volumes with which markets have bounced back were not that appealing.”
Commenting on the inflation figures of 11.91% for the week ended July 5, which were declared on Thursday evening, Choksey said, “I think this was not expected and figures are excellent. These figures can give some support to the markets on Friday and I think that markets will be in green on Friday too.”
It was a mixed bag on the derivatives segment of the NSE on Thursday as investors opted to cover their short positions in Nifty July contracts while going long in the stock futures segment.