Indian equity markets stage early recovery
Tuesday, 06 March 2007, 18:30 IST
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Mumbai: A day after its 3.7 percent fall, Indian equities staged a smart recovery in the early hours of trading Tuesday due largely to a firming up in Asian markets and revival of buying interest among domestic and foreign funds. The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) surged over 250 points to 12,671 points within minutes, after it had dropped to a five-month low Monday following a global meltdown, especially in the Asian markets. The broader 50-share Nifty of the National Stock Exchange (NSE) also firmed up by 1.9 percent, or 69 points, and was trading at 3,645 points. Analysts said that the markets recovered as domestic funds foreign institutional investors, along with general investors, had turned net buyers at the prevailing lower levels to accumulate blue-chip stocks. "Apart from the buying by institutional investors, the heavy short covering by speculators also gave push to today's recovery," an equities analyst with a leading brokerage here said. "Major support has come from market heavyweights like Reliance Industries, Infosys, ICICI Bank, ACC, Tata Motors and Gujarat Ambuja Cements," he added.
Source: IANS
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