Late buying keeps key indices on positive note

Mumbai: Equity benchmarks closed in the positive territory after trading lower for most part of the session on Thursday on fag-end buying in telecom, banking and metal stocks amid expiry of monthly derivative contracts. The 30-share BSE Sensex climbed 223.60 points or 0.37 per cent to settle at 61,133.88. During the day, it had declined 431.22 points or 0.70 per cent to 60,479.06. Similarly, the broader NSE Nifty gained 68.50 points or 0.38 per cent to end at 18,191. The market breadth was in favour of the bulls, with 19 advances and 11 declines.

"Markets shrugged off intra-day volatility as last hour buying helped key indices end in the green. Investors covered their positions on the last day of the December monthly expiry, fuelling an upsurge in metals, banking and oil & gas shares on hopes of a demand revival after China lifted Covid-related restrictions. But sideways movement will continue going ahead as recessionary fears in the West continue to loom large in view of more likely rate hikes and tempered growth going ahead," said Shrikant Chouhan, head (equity research-retail), Kotak Securities Ltd.

Vinod Nair, Head of Research at Geojit Financial Services, said: "Negative closing of the US market pushed Indian bourses to a poor start. However, positive signals from US futures lifted the benchmark index above the flatline. Markets will continue to witness such sudden movements, underpinned by lingering recession and Covid fears, which will be countered by bargain hunters."