The Hindu : Business : Sensex stages partial recovery points

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Saturday, Jul 05, 2008
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Sensex stages partial recovery points

MUMBAI: Markets breathed easy on Friday as inflation and political situation, that led to relentless selling and pulled down Sensex to 12000 level, gave investors reasons to feel a bit relieved, particularly the rate of price rise which remained below 12 per cent contrary to expectation.

However, market participants credited the recovery to short-coverings and termed it as only a pull-back rally as rising global crude oil prices, which jumped past $145 a barrel level on Thursday, continued to weigh heavily on investor sentiment.

As buying trend returned, the 30-share Sensex on the Bombay Stock Exchanged closed the day at 13454, a smart rise of 359.89 points over its previous close, after moving erratically in a wide range.

Marketmen said inflation much to the relief of investors remained below 12 per cent while many were anticipating the rate of price rise to scale up to over 12 per cent. It came as big relief, they added.

Brokers said as the latest inflation came out operators and retail investors rushed to cover their short positions, helping the Sensex gain.

As investor sentiment improved, recently battered realty, capital goods and power shares attracted buying and ended with smart gains. — PTI

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