Sensex jumps 233 pts, markets to remain volatile, invest with care
The Sensex on Thursday rose 233.08 points or 1.22% to close at 19,410.84, recovering after two days of declines on the back of firming global markets and buying in sectors like IT. Manik Kumar Malakar reports.business Updated: Jul 05, 2013 02:47 IST
The Sensex on Thursday rose 233.08 points or 1.22% to close at 19,410.84, recovering after two days of declines on the back of firming global markets and buying in sectors like IT. The Nifty closed at 5,836.95 points, up 66.05 points or 1.14%.
“Key indices surged amid volatile trade as European and Asian stocks rose,” said Jayant Manglik, president, retail distribution, Religare Securities.
Investors were seen buying FMCG and IT stocks. “IT stocks gained on the back of rupee’s depreciation against the dollar since that improves their earnings,” added Manglik.
ITC, Bharti and Sun Pharma were among stocks that surged.
BPO company Firstsource shot up over 19% to close at Rs. 11.62 per share after big bull Rakesh Jhunjhunwala purchased 5.14% stake in four blocks on the NSE.
“In the coming days, (Nifty levels of) 5,760-5,770 will act as good support for the market. It may go higher to 5,900-5,940,” said Shrikant Chouhan, head, technical research, Kotak Securities.
Over the last quarter, the markets have swung wildly, rising and falling by up to 500 points. “Going forward we expect volatility to remain at these levels or increase but not to reduce,” added Siddarth Bhamre, head, equity derivatives, Angel Broking.
Investors should focus on longe term instead of reacting to short-term cues, experts said.
Which scrips and sectors could act as a buffer in these times? “Defensive sectors like pharma and consumer goods are less volatile,” said Jain. “Even IT and telecom are considered defensive sectors,” added Bhamre.