The Nifty and the Sensex recovered in the last hour and closed in the green. The Nifty closed at 5940 up 42 points while the Sensex closed at 19636 up 135 points.
Market-men said that the Q3 results for this fiscal barring IT, oil and gas had disappointed and the markets needed more good news.
“The underlying trends in volumes, profitability and NPLs do not signal a recovery. We note that the multiples of growth stocks have expanded over the past few months driven by liquidity, expectations of rate cuts and expectations of ongoing reforms. We do not see any evidence of earnings upgrades as yet, which is critical to drive the market further” said a report from Kotak Institutional Equities.
Volatility was down three per cent and the volatility index, India Vix closed at 15.81.
ONGC, DLF, ACC, Ranbaxy and Ultratech cement were the top five Nifty gainers while Bharti Airtel, Gail, Hero Motocorp, Coal India and Jindal Steel were the top five losers.