Post Market Commentary

The benchmark Sensex on Wednesday rebounded by 260 points on emergence of buying by funds in a roller-coaster ride caused by concerns of a mid-term poll following a political stalemate. Swinging in a range of 14,281.48 and 13,870.70, the BSE bar ometer settled at 14,248.66, a net rise of 259.55 points or 1.86 per cent over yesterday's close of 13,989.11.

The broader S&P CNX Nifty of the NSE also bounced by 78.25 points or 1.92 per cent to close at 4,153.15 from previous close of 4,074.90.

Analysts, however, visualised uncertain outlook for near future in the light of political standoff between the government and its Left allies on the Indo-US civil nuclear deal even as some stability was seen in global markets.

Domestic institutional investors (DIIs) were believed to have cornered a sizeable chunk of shares at the lower levels. Financial institutions and private mutual funds also made heavy sector-specific purchases, particularly shares in capital goods, metal and fast moving consumer goods (FMCG) sector, market players said.

Foreign institutional investors (FIIs) including hedge funds, however, remained net sellers. As per provisional numbers, FIIs pulled out Rs 138 crore on August 21 while DIIs pumped in Rs 826.84 crore on the same day.

Meanwhile, the CPI(M) top brass began a two-day meeting amid signals that the government is in no mood to heed its ultimatum on the issue of nuclear deal.