The spurt is primarily due to short-covering before F&O expires, said Jagannadham Thunuguntla, head of the capital markets arm and director of India’s fourth largest share brokerage firm, the Delhi-based SMC Group.

1. Markets continue upward, Sensex gains 253 points
Staff Reporter | 28 Jan, 2009
Mumbai, Jan 28 (IANS) The upward movement in Indian equities markets continued
Wednesday for the second day in a row, with a key index ending 2.81 percent higher over
its previous close.
The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended at 9,257.47
points, up 2.81 percent or 253.39 points. At the same time, the S&P CNX Nifty index of
the National Stock Exchange (NSE) pulled down its shutters at 2,849.5 points, 2.82
percent higher than its Tuesday close of 2,771.35 points.
Broader market indices also closed higher with the BSE midcap index gaining 1.64
percent higher and BSE smallcap going up 1.18 percent. Of the 13 sectoral indices on the
BSE, realty and metal indices shot up the most indicating healthy buying of such stocks.
Realty and metal stocks have borne the brunt of shallow investor confidence over last
week.
Analysts ascribed the rally mostly to short-covering by investors before the future and
options (F&O) contract expires Thursday.
The spurt is primarily due to short-covering before F&O expires, said Jagannadham
Thunuguntla, head of the capital markets arm and director of India’s fourth largest share
brokerage firm, the Delhi-based SMC Group.
Among major gainers on the Sensex were Ranbaxy (up 7.56 percent at Rs.213.50), ICICI
Bank (up 7.08 percent at Rs.408.35) and DLF (up 6.63 percent at Rs.177.70)
Top losers were Maruti Suzuki, which incidentally announced price hikes of some of its
car models, (down 3.15 percent at Rs.520.50), Reliance Communications (down 3.03
percent at Rs.166.40) and Sterlite (down 0.41 percent at Rs.266.70). Market sentiment
was positive with 1,403 stocks advancing, 1,025 declining and 102 remaining unchanged.
In other Asian markets, the Nikkei, a key index of the Tokyo stock Exchange, closed 0.56
percent up while the Hang Seng, a key index of the Hong Kong Stock Exchange, fell 0.63
percent over its last close.