Sensex gains 87 points on short-covering

Mumbai, Aug 29 | Updated: Aug 30 2006, 05:30am hrs
A strong trend witnessed in the global markets and a fall in the crude prices helped the Indian bourses gain ground on Tuesday. Short covering was also witnessed as the expiry of the derivatives contract is just round the corner.

The 30-share Sensex of the Bombay Stock Exchange (BSE) gained 87.33 points to close at a three and a half month high of 11,706.85. During intra-day trades, the index also touched a high of 11,739.77.

Technology stocks were in limelight as index constituents and tech majors like Infosys Technologies, Wipro Ltd, Satyam Computers and TCS all gained ground and supported the Sensex. The broader S&P CNX Nifty of the National Stock Exchange (NSE) ended the day at 3,425.70, up 24.60 points. Among other major Asian indices, both, Nikkei and Hang Seng gained more than 100 points.

According to market players, a good amount of short covering was witnessed, just ahead of the expiry of the August derivatives contract on Thursday.