Sensex Gains 99 Points On Fund-Buying, Short-Covering

Major stock indices staged a smart recovery yesterday, mainly on account of local operators activity coupled with fund-based buying. The 30-scrip BSE sensex gained 98.54 points to close at 3,480.86, against Fridays close of 3,382.32. The NSE-50 closed at 1,017.25 points, up 19.45 points.

Market sources said foreign funds made purchases at select counters, including HLL, SBI, Corporation Bank and LML. This, coupled with short-covering, saw the market moving up sharply.

Initially, there was some selling in scrips like HLL, Bajaj Auto and others. Once the selling in these counters stopped, foreign fund buying propped up the market. The operators got into the act which saw the market soaring in afternoon trading, said a dealer. However, market sources were sceptical of how long the current upswing would last.

 

Bank scrips stayed in the limelight. State Bank of India closed at Rs 257.55 on the National Stock Exchange (Rs 244.95), on reports that the FII investment level in the scrip had come down to 16.5-17 per cent.