Sensex closes 202 points higher at 10,617
The stock markets maintained a bullish tempo and added another 202 points to its kitty, as the rally stretched to the third day in a row largely on hectic short covering by foreign funds and operators.
The volatility in the market was attributed to the expiry of the derivatives contract on July 27.
The Bombay Stock Exchange (BSE) 30-share sensitive index (sensex) recovered from early lows of 10,362.61 and surged up to end at 10,617.27 from Tuesday's close of 10,415.61, a net rise of 201.66 points or 1.94 per cent.
The sensex has gained 531.36 points or 5.27 per cent in three trading sessions since July 24.
The National Stock Exchange's (NSE) S&P CNX Nifty also shot up by 69.65 points or 2.29 per cent to 3,110.15 from previous close of 3,040.50.
Foreign Institutional Investors (FIIs) were engaged in covering short positions in the Futures & Options (F&O). Local Funds too were believed to be buyers in blue chip counters.
FIIs pumped in Rs 1,905 crore in the F&O on July 24 and 25 while making purchases of Rs 124.9 crore in the Cash, including provisional figure of Rs 93.4 crore on Tuesday.
Crediting the rally to robust earnings season, brokers said the market is driven by day to day announcements of first quarter results, which are better than the market projections.
They, however, stated that the impact of higher earnings is not felt as expected because it was already reflected in the share prices.
Bharti Airtel, ONGC, Mah & Mah and Bank of India released excellent Q1 results during the day.