Bears trapped

A main contributor to Tuesday's single-day absolute gain for the Sensex was heavy short covering by the bears, who got trapped in the frenzied upturn in stock prices on Tuesday.

Dealers said bears had created heavy short positions on the Nifty yesterday, expecting the Left Front to pull the rug from under the Congress-led government over its differences on the nuke deal with the US.

However, the UPA-Left meeting on Tuesday, which showed signs of a patch up, coupled with fresh buying in the cash markets forced the bears to run for cover, they said.

"Bears were trapped on Tuesday. Record inflows and massive short covering propelled the stock prices on Tuesday," said an analyst with a local brokerage.