The Deccan Share

Short covering and value buying by domestic institutions and high net investors saw the Sensex end the week on a positive note, up 158 points at 14,442. The Sensex lost two per cent during the weak and the Nifty three per cent. "It was a technical bounce back," said Mr Gopal Agarwal, head, equities, Mirae Assets Global Investment Management. "The markets are likely to remain volatile and technically it was important for the market to remain positive on Friday otherwise it would have fallen below 3,800. It was mostly local institutions and high net worth individuals who participated in the market on Friday."

Mr Ranjit Kapadia, head research, Prabhudas Lilladher said "it was a bounce-back due to short covering and the Sensex moved up 200 points from the morning low." Besides he pointed out "the valuations are attractive at the present rates. The market went up four per cent since up since July 24.

It was 13,850 and is now in the 14,414 range while crude declined by eight per cent. There was genuine buying at lower level, said Mr Ambareesh Baliga, vice-president, Karvy Stock Broking. The markets were beaten down so heavily on Thursday on fears of inflation and measures that the RBI would take, that prices were attractive.

He said on Thursday banks stocks lost heavily and today one could see a lot of buying in these stocks. On Thursday 29 of the 30-stock Sensex were hammered down and on Friday there was active buying in these stocks. "People are jumping in at lower levels," said Mr Baliga. The market opened weak on weak cues from the Asian market which all closed in the red, except for the Singapore market which was up marginally.