As the Congress-led United Progressive Alliance (UPA) government at the Centre inched towards majority in the run-up to the vote of confidence and the political picture emerging much clearer on Monday, the domestic bourses’ rally entered the third day.
The positive global cues in the form of strong Asian markets and with crude under control, the markets saw a positive impact.
The 30-share Bombay Stock Exchange (BSE) Sensex gained 214.64 points or 1.57% before closing at 13,850.04 points. The broader National Stock Exchange (NSE) Nifty added 67.35 points or 1.64% before ending at 4,159.50 points.
Market analysts feel that positive global cues coupled with genuine buying in the bank, realty and healthcare stocks led the Indian indices to end in positive terrain. The Sensex opened the day 147 points higher at 13,782.13 points compared to its previous close of 13,635.40. After moving in the intra-day range of 298 points and touching day’s high and low of 13,878.88 points and 13,581.19 points respectively, it finally closed at 13,850.04 points.
Arpit Agarwal, head of research, Arihant Capital, said, “We witnessed a short pull-back rally as the political picture is getting clearer. Taking a cue from this, investors have started to cover short positions both in the cash as well as derivatives segment. If the UPA government manages to seek enough support by Tuesday evening, we might see more short positions being covered implying lesser short positions being carried forward following the July expiry.”