Markets show resilience, up by 93 pts
The NSE S&P CNX Nifty also recovered by 62.15 points or 1.99 per cent to 3,177.70 from previous close of 3,115.55.india Updated: May 25, 2006 17:38 IST
The stock markets showed greater resilience on Thursday, as it bounced back from early lows and ended with a 93-point gain at 10,666.32 following a substantial cut in margins on stocks.
Initially, dipping by 298 points to the intra-day low of 10,274.93, the Bombay Stock Exchange (BSE) 30-share sensitive Index (Sensex) later recovered its losses and even rallied smartly to end the day at 10,666.32, a net rise of 93.17 points or 0.88 per cent.
The National Stock Exchange's (NSE) S&P CNX Nifty also recovered by 62.15 points or 1.99 per cent to 3,177.70 from previous close of 3,115.55.
Institutional Investors and operators were believed to be engaged in short-coverings at the last day of May contract in derivatives contract, as anticipated.
Encouraged by a decision of the BSE and the NSE to reduce margins in the Cash and derivatives segment by as much as 50 per cent with immediate effect, domestic funds covered their positions in the F&O, market players said.
The positive turnaround was well supported by a sharp rebound in metal prices during the day after the overnight crash on the LME.
Metal stocks, which suffered heavy losses yesterday, were in the limelight on fresh buying support.
The changed situation on the market raised hopes that the clear picture on the future trend swill emerge in the new contract of derivatives segment, they added.
Asian markets, however, witnessed weak trend. The Nikkei ended down by 213.15 points, the Hang Seng by 125.77 points and Singapore ST Index by 32.10 points