Short Covering in 33 Stocks, Including Infosys, Trent, and UltraTech, May Lift Markets

A rise in short covering among the 33 most shorted stocks, including Infosys, Trent, and UltraTech Cement, will be a positive to Indian equity markets. Elara Securities analysts highlighted that this can be driven by technical support levels as well as dwindling foreign inflows to emerging markets. Infosys appreciated 1.38% on March 5 to ₹1,711.5, while UltraTech Cement jumped 4.8% earlier this week in response to encouraging management comments. Likewise, the long-term growth story of Trent remains intact after recent corrections. Short covering typically occurs when investors close short positions by covering stocks, exerting upward pressure on prices. With indices near significant support levels like their 100-week moving averages, this rate could indicate a short-term rally for the markets. Yet, experts warn that more widespread market risks remain, implying recoveries are intermediate in character. Source: Economic Times, Financial Express