Markets bounce back on crude oil price dip

Our Bureau Mumbai | Updated on July 05, 2011

In a jubilant mood: Stock brokers reacting to the uptrend in the Sensex movement. (file photo)   -  Business Line

Equities staged a strong recovery on the domestic bourses on Friday. Brokers said easing global crude prices improved market sentiment that led to the bounce back.

Crude oil price fell by $5 a barrel from $94.7 to $89.69.

The Sensex rose 2.89 per cent (513.19 points) to close the day at 18,240.68. The 50-stock Nifty also gained 2.84 per cent or 151.25 points to close at 5,471.25.

FIIs bought net equity worth Rs 890.44 crore while DIIs were net sellers on Friday and sold Rs 486.85 crore worth of net equity on the BSE and NSE.

Retail investors also sold net equity worth Rs 96 crore on the BSE.

“Thanks to softening crude oil prices, the rally on Friday was better than expected,” said Mr Alok B. Agarwal, Head-Research, Mata Securities.

“Unless crude oil softens further on a sustainable basis, this equity market rally would not last long and market direction would become obvious only after a couple of months when there is clarity on the behaviour of monsoon, inflation, QE3 and crude oil prices.”

Published on June 24, 2011

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