Friday's market surge may be temporary; traders need to be cautious

With net inflows of Rs 5,868 crore from domestic investors, leading indices closed with gains of over 4%

When trade was halted across the global markets a night before and despite federal and state interventions, they closed in the red, none would have expected the Indian markets to react differently. On Friday morning, after the Sensex locking in the lower circuit at 29,339, the dramatic recovery once trade resumed was something never seen before.

Many factors came to play. The US’ Dow Futures trading positively lifted the mood for the Asian markets, including India. Another major leg-up came from the rupee, which made some comeback after hitting an all-time intraday low of 74.15 to a dollar. An interesting component