Mumbai: The sensex reversed a nine-session slide, the longest streak in a decade, with a 308 point rally to close at 18,519, on Friday. Despite the 1.7% gain, market players, are not too optimistic that the gains could be sustained, the primary reason being the continous selling by foreign funds.
BSE data showed on Friday, net FII selling was Rs 655 crore which took the current month's total net outflow to nearly Rs 3,900 crore. Dealers pointed out that this huge selling has come in just five sessions, thus translating to an average net outflow of Rs 800 crore. Market players are still shaken by the over 1,400-point loss in the index during the nine sessions that has wiped off about Rs 4.3 lakh crore, On Friday, despite the overnight weakness in US, the sensex opened marginally higher and made gains through the session to close near the day's high at 18,568. Despite the gains, on a weekly basis, the sensex was down 617 points, recording its worst slide in over three months.
With the economic, fiscal and corporate situations worsening, analysts do not expect any runaway rally from here, dealers said. Brokers also warned that any continuing slide in the index from the current level could trigger margin calls on speculative positions, that could lead to forced unwinding of positions and increase selling pressure in the market.
In Friday's session, banking, auto, IT and realty__the sectors which were the worst hit in the recent slide__were the top gainers as investors went for bargain hunting at beaten down prices, dealers said. Among the sensex shares, Tata Motors was the top gainer, up 5.7% to Rs 1,200. Among the other gainers were ICICI Bank, up 5.2% at Rs 1,081 and Hero Honda, up 3.9% at Rs 1,765. Of the 30 sensex stocks, 23 closed higher while six closed in the red and one ended unchanged.
The day's session also made investors richer by about Rs 85,000 crore with BSE's market capitalization now at Rs 66.9 lakh crore.
BSE data showed on Friday, net FII selling was Rs 655 crore which took the current month's total net outflow to nearly Rs 3,900 crore. Dealers pointed out that this huge selling has come in just five sessions, thus translating to an average net outflow of Rs 800 crore. Market players are still shaken by the over 1,400-point loss in the index during the nine sessions that has wiped off about Rs 4.3 lakh crore, On Friday, despite the overnight weakness in US, the sensex opened marginally higher and made gains through the session to close near the day's high at 18,568. Despite the gains, on a weekly basis, the sensex was down 617 points, recording its worst slide in over three months.
With the economic, fiscal and corporate situations worsening, analysts do not expect any runaway rally from here, dealers said. Brokers also warned that any continuing slide in the index from the current level could trigger margin calls on speculative positions, that could lead to forced unwinding of positions and increase selling pressure in the market.
In Friday's session, banking, auto, IT and realty__the sectors which were the worst hit in the recent slide__were the top gainers as investors went for bargain hunting at beaten down prices, dealers said. Among the sensex shares, Tata Motors was the top gainer, up 5.7% to Rs 1,200. Among the other gainers were ICICI Bank, up 5.2% at Rs 1,081 and Hero Honda, up 3.9% at Rs 1,765. Of the 30 sensex stocks, 23 closed higher while six closed in the red and one ended unchanged.
The day's session also made investors richer by about Rs 85,000 crore with BSE's market capitalization now at Rs 66.9 lakh crore.
