The Hindu : Business / Briefly : Late buying leads to recovery in Sensex

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Late buying leads to recovery in Sensex

Asian markets remain mixed with a downward bias

MUMBAI: On the back of fag-end buying amid short-coverings mainly in auto, refinery and IT counters due to a fall in inflation rate as well as firm European cues, the Bombay Stock Exchange sensitive index, Sensex, reversed its initial weak trend and closed higher by another 52 points on Thursday, despite sustained capital outflows.

Brokers attributed the recovery in share values mainly to the covering of short positions on the last day of the February derivatives contract on Thursday.

The Sensex initially touched a low of 8788.32 but rebounded sharply to close at 8954.86 against 8,902.56 on Wedneday.

Asian indices gave a mixed performance with a downward bias due to fall on Wall Street on Wednesday on warning given by the U.S. government about the financial institutions. However, a smart rally in European markets at the opening also helped the late recovery in the index.

Continuing its downward slide, the inflation rate fell to about a 15-month low of 3.36 per cent during the week ended February 14 from 3.92 per cent in the preceding week. S&P cut its outlook on India’s long-term sovereign credit rating to negative from stable on Tuesday, citing worsening government finances, which could raise Indian firms’ overseas borrowing costs and weaken the rupee. — PTI

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