The market recovered impressively on Thursday, primarily due to short covering. According to a technical analyst with a domestic brokerage, the bullish trend will be confirmed only when the Nifty crosses 3,972. It had settled at 3,942.25 on Thursday (11 January), following a 92-point surge.
Heavy FII selling pulled down the market sharply in three trading sessions, from 8 January 2007 to 10 January 2007.
As per provisional data, FIIs were net sellers to the tune of Rs 24.66 crore on 11 January, the day when the Sensex and Nifty had surged 269 points and 92 points, respectively. They were net buyers to the tune of Rs 1003 crore in index-based futures. They were also net buyers to the tune of Rs 70 crore in individual stock futures that day.
FIIs were net sellers to the tune of Rs 1107 crore in the spot market on 10 January, the day when the Sensex lost 204 points.
Asian exporters led Asian shares higher on Friday. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore, and Taiwan were up by between 0.8 - 1.6%.
US stocks mounted a broad advance on Thursday as investors snapped up technology shares such as Microsoft Corp. and optimism about the economy boosted industrial stocks, pushing the Dow to a record close. Dow rose 72.82 points, or 0.59 percent, at 12,514.98. The Standard & Poor's 500 Index was up 8.97 points, or 0.63 percent, at 1,423.82. The Nasdaq Composite Index was up 25.52 points, or 1.04 percent, at 2,484.85, and hit a six-year high.
US crude oil futures slumped almost 4% on Thursday, as prices fell below $52, hitting fresh 19-month lows as fund selling intensified. On the New York Mercantile Exchange, February crude settled down $2.14, or 3.96%, at $51.88 a barrel, the lowest since front-month crude settled at $51.85 on 27 May 2005.
Infosys’ Q3 results announced during trading hours on Thursday, were in line with market expectations. The company’ s operating margins rose on a sequential basis despite a rise in the rupee against the US dollar. But its Q4 guidance was muted.