Bulls storm Dalal Street; short covering sends stock markets soaring
By S Jha
New Delhi, December 26: The gloom of Friday in the stock markets turned into jubilation on Monday. Investors who swear by Warren Buffet that “if market crashes, either buy or close your eyes” heaved a sigh of relief, as the indices recovered much of the losses in the Friday session.
After the Dow Jones set the tone in the Friday session by closing in the green, the market participants firmed up views that the China Covid tsunami is a matter of concern for Xi Jinping and the Chinese people. The global economy has already borne the full blow of the supply side inflation on account of China and no pain is going to be bigger than what Beijing has already given to the global economy.
The conciliatory tone of Russian President Vladimir Putin and his Ukrainian counterpart Volodymr Zelenskyy, with both the leaders showing signs of giving dialogue a change to end the war, also rubbed in favourably in the equity market. The sharp dip in the indices in the Friday session had also given the signals of oversold positions. Additionally, the heavy buying by the domestic institutional investors (DIIs), which bought over Rs 3300 crore of equities during the Friday bloodbath, instilled confidence in the market participants to change the gear in the Monday session. The DIIs again pumped in a net of Rs 1468 crores in the equities, while their foreign counterparts were marginally sellers with a net sell of Rs 498 crores.
The Banking space, which has been the favourite of the bulls this year, once more led the market recover. After the HDFC Bank gave a sense of confidence in the Bank Nifty, the high beta IndusInd Bank came in the action and remained firm throughout the session, logging in over five per cent of gain. IndusInd Bank has been seen to be among the most bullish stock, The State Bank of India also joined the action, bouncing back from the support of Rs 565-70 level to go past Rs 600 during the day. Yes Bank, which is majorly owned by the SBI, also zoomed.
The easing of the fear of the China Covid also brought relief to the travel companies, as Ease My Trip soared by 20 per cent to hit the upper circuit. The high beta stocks, which had been the favourites of the investors this year such as Mazdock, Adani Transmission, Devyani International regained the sharp positive momentum.
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