13 July 2011

Sensex rebounds on short covering


The benchmark Sensex snapped three days losing streak on Wednesday and bounced back with more than 100 points gain led by short covering. Mood in Asian markets too looked good despite downgrade Ireland to junk by Moody's. Oil & gas, banking, realty, metal, auto and ADAG stocks were on buyers' radar.
"We remain buyers of Indian equities though the recent run-up in oil prices is a concern," Parul Saini of RBS said.
"We believe that margin compression, which we expect in Q1, should indicate to the RBI that corporate pricing power has weakened. This supports our view that monetary tightening is close to its end. Meanwhile long-term foreign money is coming back to emerging markets including India," Saini explained.

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