Despite opening on a cautious note on the back of rising inflationary pressure in the economy, key Indian indices taking cues from the global markets ended the day on a positive note on the back of some short covering at lower levels and some value picking by institutional investors.
The 30-share Sensex of the BSE after witnessing some selling pressure in the early trades closed the day on a positive note at 15,757.08 points surging 413.96 points or 2.70% while the broader Nifty of the NSE gained 144.2 points or 2.46% to close at 4,761.20 points.
Indian markets on the previous trading session on Friday reacted to the weak inflation data, which breached the 7% mark, by falling by more than 480 points while the Nifty fell by more than 124 points.
Positive opening in the European markets also led the other Asian markets to surge on Monday with China?s Shanghai Composite posting highest gains, adding 153.37 points or 4.45% to end the day at 3,599.62 points while the Hong Kong?s Hang Seng gained 314.13 points or 1.29% to close at 24,578.76 points.
Anil Advani, head of Research, SBI CAP Securities said, ?The markets are moving in a range with lower volumes and reacting to each and every news and moving in the positive and the negative side. Low volumes are really a matter of concern for the markets and also FIIs are not coming in a big way. Good corporate results might come as a short breather for the markets?.
The combined turnover of both the SEs was at the previous level of around Rs 17,000 crore but the number of shares traded jumped to 78.75 crore shares from the previous 74.26 crore shares. On the derivatives segment, Nifty April futures shed 15.21 lakh shares or 4.68% in its Open Interest (OI) to close at 4,764.40 points trading at a premium of 111.70 points or 2.40% with respect to its previous day’s close.
For the first time in the month, according to the provisional figures from the Stock Exchanges (SEs), the foreign institutional investors (FIIs) were net buyers in Indian equities at Rs 346.04 crore on Monday. Even the domestic institutional investors (DIIs) were net buyers Rs 245.93 crore. In the broader markets most of the fertilizer companies ended the day in the positive terrain on the back of the reports that the Union fertilizers and chemical minister wants fertilizer subsidy to rise by three times from the current level. Gujarat State Fertilizers and chemicals Ltd (GSFC) surged by more than 7.19% or Rs11.65 to end the day at Rs173.60 while Chambal Fertilizers added 5.62% to close at Rs 50.75. Mangalore Fertilizers, Nagarjuna fertilizers, GNFC surged by around 4% each.