Short cover sees Sensex bounce back in style

The index gains 267 points to end the week on high note

 Gains in European stocks and higher US index futures also aided sentiment, but Asian stocks were mostly lower during the day.  Also, data released in the afternoon showing stronger-than-expected industrial production growth for October 2010 too aided the recovery.

After a sell-off in the previous five sessions, the equity market on the last day of the week witnessed a rally with all the sectoral indices on BSE rose.

However, experts in D-street are not too joyous over this recovery and not willing to intrepret this as a signal indicating that the market is out of the woods.  In short, they are in a ‘wait and watch’ mode.

Stocks were volatile and the key indices slipped into red, soon after recovering from an initial slide. The market surged to a fresh intraday high in morning trade, while extending gains in mid-morning trade after the strong IIP data. Thereafter, it trimmed gains in early afternoon trade and moved in a range in mid-afternoon trade, while the Sensex surged to fresh intraday high in late trade.

The popular Sensex at BSE was up 266.53 points or 1.3 per cent to close at 19,508.89 points. The barometer index of BSE rose 295.04 points at the day’s high and lost 167.79 points at the day’s low. The 50-unit S&P CNX Nifty at NSE was up 90.85 points or 1.58 per cent to settle at 5,857.35 points in the day’s closing. Broader market wise, the BSE Mid-Cap index rose 2.02 per cent and the BSE Small-Cap index gained 2.36 per cent.

The market breadth, indicating the overall health of the market, was strong with as many as 1961 shares on BSE advanced while 1020 stocks declined and nearly 478 scrips remained static or unchanged.

The combined traded turnover on both exchanges stood at Rs 1,46,420.84 crore, which included Rs 17,173.48 crore from NSE cash segment, Rs 1,24,931.57 crore from NSE Future & Options and the rest of Rs 4,315.79 crore from BSE cash segment.

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