On the back of fag-end buying amid short-coverings mainly in auto, refinery and IT counters due to a fall in inflation as well as firm European cues, the benchmark Sensex reversed its initial weak trends and ended up by another 52 points, despite sustained capital outflows.
On the back of fag-end buying amid short-coverings mainly in auto, refinery and IT counters due to a fall in inflation as well as firm European cues, the benchmark Sensex reversed its initial weak trends and ended up by another 52 points, despite sustained capital outflows.
Brokers attributed the recovery in share values mainly to the covering of short positions on the last day of the February derivatives contract on Thursday.
The Bombay Stock Exchange 30-share Sensex initially touched a low of 8,788.32 but rebounded sharply to settle the day at 8,954.86, a rise of 52.30 points or 0.59 per cent over its previous close. Yesterday it was up by over 80 points.
The 50-share Nifty of the National Stock Exchange too rose by 23.15 points or 0.84 per cent to 2,785.65 from its last close. Asian indices, however, gave a mixed performance with a downward bias due to fall on Wall Street yesterday on warning given by the US government about the financial institutions.
However, a smart rally in European markets at the opening also helped the late recovery in the index. Continuing its downward slide, inflation fell to about a 15-month low of 3.36 per cent during the week ended February 14 against 3.92 per cent in the preceding week, providing greater room to the apex bank to cut interest rates to perk up the slowing economy.
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