The day after bloodbath Sensex soars 195 pts

Is it the fine print in the Union Budget or the orchestrated strategy of a cartel that saw the market bouncing back the day after the budget? On Wednesday, the Sensex which staged a comeback make us believe that tomorrow could be even better. The billion rupee question: will it be? Yes. As soon as the market opens on Thursday morning market players expect the trading session to open on a strong note.

The day after the bloodbath Sensex soars 195 pts 

But, between Tuesday's crash and Wednesday's rebound, there's more to it than meets the eye. And if the views of some brokers are any indication, the market is still directionless.

The market is in the grip of a few powerful operators who are playing the budget card to their advantage, says a section of brokers. A 293-point slump on Day 1 and a 195-point jump the next day raises doubts over the sustainability of the market level. To add to the merry of the operators is the last-day-first-day advantage of the trading cycle on the NSE. Wednesday, the BSE Sensex closed 195.14 points higher at 5642.12, and the thrifty closed 57.90 points higher at 1712.70.

Market players say that it has not been so much the lack of clarity on the budgetnegatives that pulled the market down on Tuesday. They point to the fact that being the last day of the settlement on the NSE, a number of players are unable to shift their position to BSE. They were forced to liquidate their positions on the NSE. And, on Wednesday they could pick up the same set of stocks at around levels prevalent the previous day. So when the buyer comes back the confidence level has to be built up which comes in the form of the fine print reading of the budget,'' points out a broker.

FIIs who have been playing a contrarian game in the market stayed off the market virtually though the buying opportunity was available. For the FIIsbudget has become irrelevant if their shopping spree in the Indian markets during February is any indication. They poured in over $600 million ahead of the budget. Obviously, they are not concerned about the budget and decided to stay away from the market on D-day, leaving the field wide open to the operators,'' points out a dealer.

Tuesday's FII figures released by Sebi show that the net investment was Rs6 crore on a gross purchase-sale figure of around Rs 700 crore. This suggests the lack of interest and the wait-and-watch approach of the FIIs.It may be pointed out that the Sensex has gained 900 to 1000 points over the last two months. A Sensex level close to 5900 provides a good platform for operators to swing the market either way. A small dose of negative news is enough to move sentiments to extremes.