Nifty ends 1.5 per cent up; RIL, ICICI Bank, SBI, BHEL, NTPC lead
10 December 2010
The 50-share NSE Nifty has seen sharp pullback on Friday on the back of short covering as well as cash based buying in oversold stocks, especially after seeing a sell-off in previous five days. Heavyweights like Reliance Industries, ICICI Bank, NTPC, SBI, BHEL and Wipro led the rally from front.
The index was down around 50 points in opening trade on the back of hangover of yesterday's carnage but managed to show steep recovery in rest of the session. It regained more than 130 points from day's low of 5,721.15 and the Sensex over 415 points from low of 19,074.57.
But experts are not very happy with this recovery. Independent market strategist Ved Prakash Chaturvedi does not want to jump the gun and interpret the recovery as a signal that the markets are out of the woods. ''My sense is that we will be into a market, which will continue to be driven by news of the day, sometimes positive, sometimes negative.''
"While the underlying sentiment will be of good cheer as we move into 2011 and people will continue to be optimistic on the outlook of the markets in India, I think we will see some very sharp swings and significant downward corrections are not ruled out,'' he further adds.
According to Dipan Mehta, member of BSE & NSE everybody is right on a ''wait and watch'' mode. ''The way these margin triggers work is that if certain price levels are breached then automatically a stop loss orders or positions square up orders get generated almost automatically,'' he explained adding, ''So long as we are trading above yesterdays levels I don't think that further sell orders will get generated or margin calls will get activated.''
Better-than-expected growth in industrial output also led some support to markets. October industrial production recorded a double-digit growth at 10.8% compared to 4.4% on a month-on-month basis. Capital goods sector grew 22% versus 10.9% on year-on-year basis.