The domestic benchmark indices surged over 5% on Friday (Sep 19) as foreign institutional investors (FIIS) turned net buyers after a week of huge selling pressure, tracking reaction in the worldwide markets that saw a complete turnaround from the previous day.

Brokers said that the majority of buying was seen in the index stocks.

The BSE Sensex, which opened positively at 13,763.83, up 448.23 points, on encouraging global cues, remained strong all through the day.

Moreover, the news from New Delhi that the US crisis would not have much impact on the Indian economic system also cheered the outlook. 

Finally, Sensex closed the day at 14,042.32, up 726.72 points, while the broad-based NSE Nifty marked its closure at 4,245.25, up 207.10 points.

Ms Anita Gandhi, Head of Institutional Business, Arihant Capital Markets Ltd, said, “There was a whole lot of short-covering and also some amount of buying. But, the domestic financial institutions were not seen purchasing so much, the buying seem to have come more from foreign institutional investors.”

While commenting on the market condition, stock market analyst Vishwas Agarwal said that on the BSE, above 13,786 the stock market is in the safety zone for 14,150 and 14,555 levels, and maximum for 14,786 level. 

“I had said after Nifty futures touches 4,009, we would see panic short covering, and our target for Friday, 4,286 was achieved,” he said.

Mr. Agarwal added that the nuclear deal is a crucial event in the coming week, and on this Sunday, Chairman of RIL, Mr. Mukesh Ambani will announce the fabrication of oil and gas that will be another big happening. 

He also said that the above mentioned events will assist the stock market to remain strong next week. Overall next week will be event based, with lots of trading chances.