Sensex jumps back to 17,000 after a week of yo-yo moves
The benchmark Sensex of the Bombay Stock Exchange is back at 17,000. Amidst huge volatility in May, the index staged a smart 1,000 points, or 6.2 per cent, recovery over the past seven trading sessions to close at 17,022 on Thursday.business Updated: Jun 03, 2010 22:39 IST
The benchmark Sensex of the Bombay Stock Exchange (BSE) is back at 17,000. Amidst huge volatility in May, the index staged a smart 1,000 points, or 6.2 per cent, recovery over the past seven trading sessions to close at 17,022 on Thursday. However, experts still advise caution, saying it does not signal that stability is back.
The Nifty of the National Stock Exchange also rose by 1.8 per cent on Thursday to close at 5,110.
“The market is reacting to news in the West and till we see some symptoms of disconnection, investors should remain watchful,” said C.J. George, chief executive officer, Geojit BNP Paribas Financial Services.
The gains came on the back of a sharp 2.3 per cent rise in the Dow Jones Industrial Average on Wednesday and strong recovery in the Asian and European markets on Thursday.
Other than China, which has growth rate concerns going forward, all other major markets were trading in the green. “It is a day traders market as the market is moving on global news. Investors need to be careful while investing in these markets for short-term gains,” said the head of a fund house on condition of anonymity.
Experts also said that since one does not know what surprise will come out the next day, it is better to avoid this volatile period in this market.