Markets which were trading in the red for most part of the day, staged a smart rally on short covering and institutional buying.
The Sensex closed the day higher by 136 points, while the Nifty gained 44 points. Markets began the day on a weak note, with weak Asian cues, after the Federal Reserve did not suggest any aggressive moves on quantitative easing.
However, in the last one hour of trade the markets rallied sharply on short covering. Among the shares that gained in trade today were Jaiprakash Associates, DLF, IDFC and PNB.
Shares of cement companies including ACC and Ambuja Cements continued to lose ground on fears that the cartelisation report may lead to fines by the CCI.
Dealers say that the markets are expected to remain range bound in the absence of triggers, particularly domestic triggers. With the monetary policy review, Greece elections and the Federal Reserve meeting now behind, the markets may look for fresh triggers.
Meanwhile, the rupee touched a historic low today and marketmen fear that fresh historic lows may deter foreign funds from making fresh purchases in equities.