The Nifty snapped a six-day losing streak and recouped all of Tuesday's losses on the back of institutional buying in heavyweights, short covering and positive global cues. The Sensex rallied over 500 points while the Nifty jumped nearly 150 points to close above the 4,700 mark. However, volumes remained below the Rs 1 lakh crore mark.

Buying was seen in the same stocks, which were beaten down badly yesterday. Heavyweight Reliance Industries surged 5.5%. All the sectoral indices ended in the green. The BSE Realty Index outperformed other indices, jumped over 10%. The Metal Index rose 5.5%. IT, Oil & Gas, Bank, Auto, Healthcare, FMCG and Power indices gained 2-4%.

The 30-share BSE Sensex closed at 15,912.13, up 507.19 points or 3.29% and the Nifty was at 4710.80, up 146.90 points or 3.22% over previous close. The BSE Midcap Index outperformed the benchmark indices, jumped 3.5% and the Smallcap Index rose over 2%.

Big short covering was seen in the Nifty and high beta stocks. Big build-up was seen at Nifty 4600 Put. The Nifty November futures closed marginally in the premium.

However, Jagdish Malkani of Taib India said there was a risk of sharper cut that would take below 4,500 on the Nifty. "After such a vicious turn this is a welcome thing but in general there are enough storm clouds on the horizon. And now who knows what could be the next trigger, whether it's the partial unwinding of the dollar carry trade or it's our own domestic factors etc but I see some more pain ahead."

Rajen Shah, CIO of Angel Broking said about 15,300-15,500 levels, markets were fairly priced and any upmove from those levels was going to be purely based on liquidity. "I think the markets are going to be in a range of many 14,900 and about 16,100 for November and December."

Gold was trading at record high in the global and Indian markets as well. Gold Continued on the next page...