Sensex snaps 4-day losing streak, closes 285 pts higher
28 Feb 2012
The market staged a smart recovery on Tuesday, scoring triple century on the Sensex after shedding nearly 1000 points in previous four sessions. Investors and traders made huge buying in most beaten down banks, capital goods, metals and auto stocks. In fact, the broader markets outperformed benchmarks led by sharp spike in infrastructure and PSU banks.
The BSE benchmark rose 285.37 points or 1.64%, to close at 17,731.12, supported by 24 stocks. Meanwhile, the NSE benchmark moved up 94.30 points or 1.79% at 5,375.50.
According to Abhijit Chakraborty, Senior VP - Institutional Equity of Fortune Equity Brokers, today's rally could be attributed to second LTRO by European Central Bank on February 29.
"Second round of liquidity burst coming from Europe could once again drive the emerging markets and that could be a very significant development coupled with the fact that China continues to maintain a loose monetary policy. Internationally this year is going to be year of liquidity right from Australia, Japan, Europe and US. Every major economy in the world is going to be pumping in liquidity this year," Chakraborty explained.
In the short-term, however, he feels inflation continues to be a threat in India and election results could go either way.
Sudarshan Sukhani of s2analytics.com expects about 100 points upside on the Nifty.