Nifty tests 5550 amid choppy trade; ONGC, SBI gain

Indian equities bounced back after a marginal cut seen in initial trade at 10:45 hours, supported by financial, metal, auto, Anil Dhirubhai Ambani Group and healthcare companies' shares. Heavyweights ONGC and BHEL too added more gains, which helped the Nifty to touch 5550 level.

Ridham Desai of Morgan Stanley feels that FIIs ownership is now back to the 2009 levels. "We believe valuations are more appealing now. Although fundamentals are shaky, we think that this is now being factored into the price. Consequently we have upgrade financials to neutral. We are funding this by cutting our position in consumer staples by 100 bps."

Roopesh Patel of HSBC Securities and Capital Markets too said,