Bargain hunting propels markets; BSE Sensex up 167 points

Mumbai, Dec 10: Bargain hunting and unravelling of short positions by investors propelled a barometer index of the Indian equities markets into making gains during the mid-afternoon trading session on Thursday.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) made gains after six consecutive days of losses. It was higher by 167 points or 0.67 percent during the mid-afternoon trade session.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was higher during the session under review. It rose by 46 points or 0.60 percent at 7,658.05 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,136.71 points, was trading at 25,203 points (at 2.20 p.m.) — up 167 points or 0.67 percent from the previous day’s close at 25,036.05 points.

The Sensex so far touched a high of 25,259.06 points and a low of 25,034.14 points during the intra-day trade.

The barometer index had receded by 1,134.23 points during the last six consecutive sessions, whereas the NSE Nifty declined by 343 points.

Market observers said short coverings of position by investors led the relief rally after six consecutive days of losses.

“Markets are trading in the green after six straight sessions of losses led by covering of short positions by traders,” Vaibhav Agarwal, vice president and research head at Angel Broking, told IANS.

Agarwal pointed out that markets positive trajectory might be short-lived due to the logjam in parliament and absence of fresh triggers.

“We do not expect any meaningful upside from current levels in the absence of any major trigger,” Agarwal elaborated.

“Investors will watch out for inflation and industrial production data over the next couple of days, for further direction. We also expect volatility to spike next week ahead of the US FOMC (Federal Open Market Committee) meet.”

Lately investors confidence was eroded due to the logjam in parliament which has dimmed the prospects of the Goods and Services Tax (GST) bill getting passed during the winter session.

Should the bill not secure clearance in this session, it will miss its intended roll-out date of April 1 next year.

Moreover, the continued selling of equities by the foreign investors ahead of a likely US rate hike and the upcoming domestic macro-economic data points, slated to be released on Friday, spooked investors.  (IANS)