MUMBAI: The stock market showed strong resilience after a three-session battering, bouncing back by 186 points on Wednesday amid high volatility as select foreign funds jumped at the buying opportunity and cornered sizable chunk of shares.
Swinging wildly between 13223.00 and 12830.38, the Bombay Stock Exchange 30-share sensitive index ended the day at 13181.34, a net recovery of 186.32 points or 1.43 per cent over Tuesday's close of 12995.02.
The broader S&P CNX Nifty of the National Stock Exchange also recouped by 48.30 points or 1.30 per cent to close at 3765.20 against the previous close of 3716.90.
Foreign Institutional Investors were believed to be using the sharp downward correction to create fresh positions, brokers said.
Some leading foreign funds, particularly the US-based Fidelity Investments have been making purchases in several counters.
The offloading in the last three days was so intensive that the open interest in derivatives saw a sharp erosion by over six per cent on December 12 alone.
FIIs reported net investments of Rs. 422 crore in cash on December 11.
Their inflows amounted to Rs. 259 crore as per the provisional number while pumping in Rs. 341 crore in the Futures and Options on Thursday
Banking and capital goods shares, which witnessed heavy battering in the last two days, staged a sharp recovery with their indices jumping by 193.74 points or 2.97 per cent and 198 points or 2.26 per cent at close. PTI