INSUBCONTINENT EXCLUSIVE:
over ILFS alleviated frayed investor sentiment
The benchmark Nifty reclaimed the 11,000-mark as traders unwound their short positions ahead of the NCLT judgment, which allowed the
government to supersede the board of ILFS after trading hours on Monday
infrastructure lender, which had rattled financial markets due to default on its payments, has lifted market spirits but the relief may be
temporary as the broader markets continue to be largely weak
borrowing programme, but market participants believe risks of fiscal slippage remain.
The benchmark indices spent a better part of the day
in the red, but the ILFS news prompted traders to cut their short bets
The Sensex ended up 299 points, or 0.83 per cent, at 36,526.1 and the Nifty climbed nearly 78 points, or 0.71 per cent, to close at
11,008.3.
The BSE MidCap index managed to recoup losses in the last hour of trade to end up 0.5 per cent at 14,840.7
The SmallCap index ended down 0.2 per cent, off its session-low of nearly 3 per cent.
Foreign Portfolio Investors net sold Indian shares
decision is the only positive factor that has happened, which will ease short-term liquidity
at Centrum Broking.
The Reserve Bank of India has decided to buy Rs 36,000 crore worth government bonds under open market operations in
Yields dropped sharply on Monday in the bond market as a result.
Meanwhile, a closer look in the smallcap space reveals that while the index
may have recouped most losses, individual stocks are facing deep cuts
Shares of PC Jeweller, Vivimed Labs, J Kumar Infraprojects and A2Z Infra Engineering tumbled 10-20 per cent on Monday.
Bandhan Bank was also
Tata Consultancy Services, State Bank of India, ICICI Bank and Housing Development Finance Corp ended up 2.7-3.3 per cent.
The Reserve Bank
action and outlook going ahead.
Besides, movement in oil prices and the Indian currency will be the key triggers for the market.
