Mumbai, Nov. 22: The markets made a splendid recovery on Monday wiping out Fridays losses on short covering and support from the European markets that opened positive. The news that Ireland asked for and will get a bail out package from the European Union and the IMF saw the markets move up globally though fears of Spain and Portugal going the Ireland way were not ruled out. The Sensex was up 372 points at 19,957.59 and the Nifty crawled up above the 6,000 mark to close at 6,010 up 119.70 points,
The big players reversed the markets on Monday and there was value buying as the markets had gone down seven per cent since Diwali. People who had gone short on Friday also covered their positions when the markets opened.
“The rollover has still to happen as on Monday just around `9,000 crore was rolled over and there are just two trading days before Thursday’s expiry in the derivatives segment,” said Mr Kishor Ostwal of CNI Research. He says it would not be surprising if the Sensex goes down on Wednesday by 200 points and then recovers close positive.
Fears of a political upheaval that dragged the markets down on Friday were proved wrong so the markets bounced back on Monday said Mr Ambareesh Baliga of Karvy Stock Broking.
“The bounce back received support from the European markets that saw a strong opening though they slipped into the red later. We will have to see how they close and how the US markets fare as that will decide the course of the markets on Tuesday,” he said. Many of the stocks that were beaten down on Friday and during last week saw a good performance. Bank stocks led the really and were among the gainers that included IT stocks.
They were up between one and a half to over four per cent, while steel and infrastructure stocks. Idea, which was on a high last week, was down on Monday.