Short covering buoys equity market; auto stocks rise

Short covering ahead of exit polls for general elections pushed the key Indian equity indices higher during Friday's mid-afternoon session.

Market observers cited trade position build-up and healthy buying in auto, banking and capital goods stocks as other reasons to push the indices higher.

However, higher crude oil prices amid rising tension in the Middle East capped the gains.

Accordingly, the two key domestic indices -- S&P BSE Sensex and NSE Nifty50 -- both traded around 1 per cent up from their previous respective close.

At 2.30 p.m., the BSE Sensex traded 374.09 points or 1 per cent higher at 37,767.57 points. It opened at 37,494.42 after closing at 37,393.48 on Thursday.

The Nifty50 of the National Stock Exchange (NSE) opened at 11,261.90 after closing at 11,257.10 on Thursday. It traded at 11,361.40 during the mid-afternoon trade session, up 104.30 points and 0.93 per cent.

According to Deepak Jasani of HDFC Securities, the market's upward movement has been triggered by short covering and build-up of trade positions ahead of Sunday's exit polls.

--IANS

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