Sensex ends 74 pts higher on the back of short-covering

Tata Steel was the flag bearer on Wednesday, gaining as much as 9%, even as volatility continued to be the order of the day. The 30-share Sensex of the Bombay Stock Exchange, opened with a wide negative gap on renewed credit concerns in the global markets, but moved up sharply crossing the 15k level for a while, on the back of bottom fishing and short covering in the derivatives segment, ahead of expiry on Thursday.

Written by Markets Bureau

August 30, 2007 00:00 IST

Tata Steel was the flag bearer on Wednesday, gaining as much as 9%, even as volatility continued to be the order of the day. The 30-share Sensex of the Bombay Stock Exchange (BSE), opened with a wide negative gap on renewed credit concerns in the global markets, but moved up sharply crossing the 15k level for a while, on the back of bottom fishing and short covering in the derivatives segment, ahead of expiry on Thursday.

The Sensex closed the day up 73.85 points or 0.50% to 14,993.04 points. Even the broader S&P CNX Nifty of the National Stock Exchange (NSE), closed the day up 38.60 points or 0.89% to 4,359.30 points.

A fund manager said, “After the tumble during opening trade, the market staged a recovery ignoring the global cues on value buying, coupled with short covering in the derivatives market. Also, buying has resumed for small-cap and mid-cap stocks mostly by domestic institutions”.

The BSE Mid-Cap index was up 0.64% or up 40.75 points to close at 6,450.39 points, while the BSE Small-Cap index rose 0.84% or 65.78 points to close at 7,874.22 points.

This article was first uploaded on August thirty, twenty seven, at zero minutes past twelve in the am.