He cautioned against overinterpreting the bounceback, noting that the India VIX is still up by 12 percent.
Story continues below Advertisement Remove AdAnalysts believe that India VIX has more room to rise and expect the volatility to continue until the general election results are announced.
At close, the Sensex was up 145 points or 0.2 percent at 72,809 and the Nifty 50 was up 64 points or 0.3 percent at 22,120.
Nine out of 13 major sectoral indices were up on May 13 with Nifty Pharma and Nifty Healthcare gaining nearly 2 percent each.
Drugmaker Cipla took Nifty Pharma higher with its healthy growth outlook coupled with hopes of easing regulatory struggles for the company.
Broader markets mixed
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The Sensex and Nifty 50 fully recovered from the day's lows on May 13 and closed in green after falling almost 1 percent each in the morning trade.
Commenting on the benchmarks pulling away from their day's lows, Ajit Mishra, SVP of Research at Religare Broking, said that this rebound could merely be a breather. He cautioned against overinterpreting the bounceback, noting that the India VIX is still up by 12 percent.
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Analysts believe that India VIX has more room to rise and expect the volatility to continue until the general election results are announced.
Also Read | Markets to become less volatile after every phase of polling: S Jaishankar
"Select index majors also witnessed some short covering or profit booking from short sellers. This rebound could be attributed to that," Mishra remarked. He emphasized that the overall market sentiment remains negative and characterized the bounceback as temporary.
At close, the Sensex was up 145 points or 0.2 percent at 72,809 and the Nifty 50 was up 64 points or 0.3 percent at 22,120. About 1,533 shares advanced, 2,001 shares declined, and 92 shares remained unchanged.
"Positionally, the first sign of reversal will be visible post sustenance above the 10 Day EMA of 22250-22300 zone. Until then, selling pressure at higher levels can be witnessed," SBI Securities said in a note.
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The broader market was mixed with BSE Midcap rising 0.3 percent and BSE Smallcap down 0.2 percent.
Nine out of 13 major sectoral indices were up on May 13 with Nifty Pharma and Nifty Healthcare gaining nearly 2 percent each. Drugmaker Cipla took Nifty Pharma higher with its healthy growth outlook coupled with hopes of easing regulatory struggles for the company. The stock was up by nearly 6 at close.
Nifty Auto, on the other hand, was the worst hit sectoral index as it shed 1.5 percent dragged down by Tata Motors which was down 8 percent. Tata Motors reported robust Q4 FY24 results, with net profit more than tripling year-on-year. While this was welcomed by a section of the Street, it was met with scepticism from others who questioned if the demand momentum would continue.
A mixed earnings season, election outcome jitters, and selling by FIIs have been weighing on the market for quite some time. This week, US and India CPI data and the ongoing earning season are the key developments to track.
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