Markets settle with marginal gains amidst intense volatility

Mumbai, May 9 (UNI) The Sensex today settled in positive terrain on the Bombay Stock Exchange with a nominal gain of 16.05 points at 13,781.51, following some value buying at lower levels that forced traders to cover their short positions during the second session.

''The market staged a sharp recovery, and infact posted gains triggered by value buying at lower levels, which helped improve the sentiment, thereby forcing traders to cover their short positions.

Bears dominated first half of the session, but sporadic buying since afternoon session led to the bulls ultimately emerging victorious.

Besides Asian markets have also begun to firm up,'' market analysts explained.

After opening firmer at 13,771.69, it had touched a high of 13,801.91 and a low of 13,612.04 during intra-day trade.

Among the broader markets, the Nifty Index also ended in the green on the National Stock Exchange (NSE) registering a paltry gain of 8 points at 4,079.30 from its previous close of 4,077.00 points.

The market breadth, which indicates the overall health of the market, recovered from initial weakness. However, it is still negative, as selling continued for small-cap and mid-cap stocks. On BSE, 1,396 shares declined, 1,161 advanced and the prices of 102 stocks remained unchanged. Its total turnover amounted to Rs 3,937 crore. Among the 30-member Sensex pack, 21 advanced while the rest declined, stock brokers said.

The government has not taken any decision to allow foreign direct investment (FDI) in the retail sector, Union Finance Minister P Chidambaram told the Rajya Sabha today. FDI was only permitted for cash-and-carry, wholesale and single brand retail. FDI inflow amounting to USD 13.5 billion in 2006-07 was the highest-ever. If retained earning and swap deals were to be included, FDI would be USD 19 billion, experts pointed out.

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