Indian stocks erase losses to trade higher on short covering (Lead)
Mumbai : Indian stock indices erased opening losses to trade slightly higher in the afternoon session on Monday, as last week's declines prompted investors to cover their short positions.
"This is 'short covering' after the large correction that we saw in the markets last week. Though the indices are in the green right now, it may not be sustain," said Astha Jain, Senior research analyst, Hem Securities.
Buying was seen witnessed in the oil and gas, banking and energy counters.
At 1.09 p.m., the broader Nifty50 of the National Stock Exchange was trading at 10,339.85 points, up 23.40 points or 0.23 per cent from its Friday's close.
The benchmark S&P BSE Sensex, which had opened at 34,412.36, was trading at 34,442.64, up 65.65 points or 0.19 per cent.
So far, the Sensex has touched an intra-day high of 34,636.43 points and a low of 34,031.98 points.
Indian stocks suffered a rout last week, as rising global oil prices, a weakening rupee, and tight liquidity conditions roiled investor sentiment.