Sensex closes 7 points below 15K mark on short-covering

Sensex closes 7 points below 15K mark on short-covering

At 1540 IST: The benchmark index provisionally ended up 0.53% higher, after being down 2.2% in early deals, on short-covering a day ahead of the expiry of futures contracts.

The 30-share Sensex provisionally rose 79.36 points to 14,998.55. During trade, the index rose above 15,000 points for the first time in two weeks.

The broader 50-share Nifty provisionally closed up 0.94% at 4,361.20.

Smart recovery

Update at 1330 IST: Share prices recover on sustained buying. Sensex trading at 14,922, up 53 points. Nifty gains 13 points at 4,333.

Early morning losses

Share prices dropped 2.19% in early trade on 29 August, snapping three days of gains, led by a fall across global markets on fresh concerns over the US economy.

The benchmark 30-share Sensex of the Bombay Stock Exchange plunged 327.88 points to 14,592.11. Later on, however, buying at lower levels led to partial recovery in the Sensex to 14,740 (down 149 from yesterday’s close) at 10:35am.

Similarly, the wide-base National Stock Exchange’s Nifty dipped by 94.34 points at 4226.35, but later recovered nearly 50 points.

Dealers said weaker hands could be expected to pull out of the markets but there was scope for value buying at lower levels.

“Global clues will keep the markets subdued but we will have to watch trends next week, after the monthly derivatives contract rollover," said Naresh Garg, chief investment officer with private sector Sahara Mutual fund.

The August derivatives contract expires on Thursday.