Markets end with modest gain amid volatility: Metals, O&G gain

04 March 2009

Markets closed the session with marginal gains amid extreme volatility and ignored positive global cues. It seems that the benchmark indices were in a consolidation phase today, after three days of continuous sell-off. The discount of Nifty March futures has trimmed down to 10 points from yesterday's 35 points, which indicated that there was a bit of short covering by traders due to positive global cues.

A relentless selling pressure in heavyweights like ICICI Bank, HDFC, SBI, BHEL, and Reliance Communication has capped the gains in today's trade. However, the buying in metal, cement, power, auto, oil & gas, and select power & technology stocks has supported the markets.

The 30-share BSE Sensex swung 128 points between an intraday high of 8,501.46 and low of 8,373.24, before closing the day at 8,446.49, up 19.20 points or 0.23%, wherein banking space has more weightage. The 50-share NSE Nifty was up 0.87% or 22.80 points, to settle at 2,645.20, wherein oil & gas space has more weightage. It swung nearly 44 points between a day's high/low of 2655.70 and 2611.95, respectively.

Martin Pring, President, Pring.com, said he would remain cautious on the Nifty till it closes above 3000 levels but added that long-term indicators are very close to giving a buy signal. 

Pring said he would be surprised if global markets recover in March. "I do not know how much further the market could slide from the current levels," Pring said. "The majority of my allocation is in good quality corporate bonds and I am shy of equities at present."

Global cues were positive while closing of Indian equities. European markets have bounced back; FTSE went up 79 points, to 3,591. CAC was trading at 2,610, up 55 points and DAX was at 3,779, up 89 points.