Mumbai, Sep 24 (IANS) Despite attractive valuations due to short coverings, a barometer index of the Indian equities was trading flat during the mid-afternoon trade session on Thursday.
The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange (BSE) gained only 62 points or 0.24 percent.
The Sensex had previously gained 171.15 points or 0.67 percent to 25,822.99 points on Wednesday.
The Indian equity markets opened on a lower note on Thursday, following a sharp downward correction in Japan’s Nikkei. However, it pared its initial losses due to bargain hunting which was prompted by attractive valuations.
Stock prices got attractive due to “short-coverings” as investors unravelled their investment positions on the expiry day of the September derivatives series.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading flat. It gained only by 22.15 points or 0.28 percent at 7,868.10 points.
The S&P BSE Sensex, which opened at 25,798.05 points, was trading at 25,885.43 points (at 2.15 p.m.), up 62.44 points or 0.24 percent from the previous day’s close at 25,822.99 points.
The Sensex touched a high of 25,949.90 points and a low of 25,670.96 points in the intra-day trade so far.
Market observers pointed out that short coverings made valuations attractive and lifted sentiments and prompted value buying.
“The markets opened lower on the back of sharp correction in Nikkei, However, it has steadily rises due to short coverings on the expiry day of September series. Short coverings has lifted prices,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.