Foreign funds retain tempo
It has been an unprecedented intra-day gain for the Sensex on Tuesday, moving from a low of 17,287 points in early Tuesday morning trade to the day’s high of 18,327.
If bulls lost the chance to take the Sensex past 18,000 on Monday, they did not let go of the opportunity on Tuesday as doubts about Left parties withdrawing support to the government subsided as they fixed yet another date to meet and discuss the Indo-US nuclear deal.
“During the initial 180-point rally bears were selling in the futures market, and they had no other option but to cover their position to square off their deals the same day as the cloud of political uncertainty lifted,” said Ramesh Patel, a BSE member.
Sensex has not got tired of setting records as it surges ahead. From a low of 13,989 the Sensex plumbed on August 21 it has climbed a whopping 4,291 points in 34 sessions. “Do not look at the rise from absolute points because the base has increased and the volumes are huge,” says Ajit Sanghvi, Director, MSS Securities. Because of the kind of volumes that exist in the markets now, corrections last just for a session or two, unlike sustained two-three week corrections seen earlier.