Mumbai, May 26: Indices were witnessing short-coverings based pull-back rally on Wednesday after recovery was seen in global peers. All the sectoral indices were in the green led by realty, IT and metal stocks. ( Watch )
Experts are of the view that as global uncertainties continue, traders should use this opportunity to square off positions and wait for lower levels for fresh buying opportunities.
“Unknown fears remain and randomness is the order of the day. Volatility is very high and so are uncertainties and risks. With the F&O expiry a day away it only gets wilder. Any sharp snap-back should be used to lighten your mental burden rather than adding positions,” said India Infoline report.
At 11:30 am, Bombay Stock Exchange’s Sensex was at 16233.71, up 211.23 points or 1.32 per cent. The index touched a high of 16293.29 and low of 16069.78.
National Stock Exchange’s Nifty was at 4869.70, up 62.95 points or 1.31 per cent. The broader index hit a low of 4807.30 and high of 4887.50.
BSE Midcap Index was up 0.91 per cent and BSE Smallcap Index moved 1.22 per cent higher.
Amongst the sectoral indices, BSE Realty Index gained 1.93 per cent, BSE IT Index advanced 1.91 per cent and BSE Metal Index moved 1.65 per cent higher.
Sterlite Industries (3.16%), Hindalco Industries (3.05%), Jaiprakash Associates (3.01%), TCS (2.73%) and DLF (2.62%) were the top Sensex gainers.
Grasim (-19.25%), ACC (-1.10%), Hindustan Unilever (-0.52%) and Reliance Infrastructure (-0.13%) were the only losers.
Grasim shares were reflecting the adjustment for proposed de-merger of cement business into Samruddhi Cement. The latter is being carved out of Grasim and merged with Ultratech. Grasim shareholders will be getting 1 share each of Samruddhi Cement.
Asian markets were in the positive terrain mirroring pull-back in the US. Nikkei 225 was up 0.78 per cent, Hang Seng moved 1.20 per cent higher and Seoul Composite advanced 0.95 per cent.
The US markets bounced back towards close as investors bought shares near six-month lows. The Dow Jones Industrial Average declined 0.23 per cent, Nasdaq Composite Index shed 0.12 per cent, while the S&P 500 gained 0.04 per cent. Earlier in the day, the indices fell more than 3 per cent on rising concerns about the European banking system after a Spanish bank failed.
–Agencies