Market Bounce Back

After two days of mayhem at the markets, there has been some attempt of a smart bounceback today. It was a good day for the investors after seven consecutive and relentless falls, wherein the markets opened with huge gap up and proceeded to trade strong and stable for most part of the day. Sensex also recorded the biggest single day gain of over 1,200 points during later half of the day and finally shut shop with substantial gains.

PN Vijay, Portfolio Manager, said, "Over the next week or two, I definitely expect some buying to emerge. In the last two days, there has been a severe cutting of positions by brokers and banks on clients who do not come up with the margins. In the last two days markets have been driven by the market internals and my sense is that between today and tomorrow heavy FII selling should get slowly eased out as liquidity comes to these intermediaries. Going forward, the market is a screaming buy at this stage for retail investors. There is a World Bank report, which said that India among the large countries is the least dependent on the US for its economic growth. So the retail investor should just forget what the foreigners are saying and just keep picking up good stocks."