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The markets opened firm today morning in the absence of any negative global cues, but turned volatile as serial blasts in UP, and the subsequent high alert across the country made traders jittery. But Indices shook off the shock in late afternoon trade, powered by capital goods, power, realty, and IT stocks.

The Nifty closed 89 points higher at 5,608 and the Sensex closed 326 points higher at 18,852.

Dipan Mehta, Member BSE/NSE expresses his concern over the UP blasts, "I think it is a most unfortunate event. But I think the impact in the market is evident. In any case the market was showing some signs of correction and weakness prior to these news being announced. And the entire fall has just speeded up. Also the news that the metros have been put on high alert kind of has a negative impact on the sentiment over here, but I do not think that this going to have a material impact on the trends on Monday or next week. This could just about be a passing phase unless we see some further developments."

But infact, as the news came in, the markets began gaining, and there has not been a significant or panic sell off yet.

To this he says, "Yes, there is no panic, it is just that it has an impact on the sentiment. Investors who are waiting on the sidelines to buy might just try and postpone their purchases and sellers in the markets, who just try and increase their selling or give lower limits."

While Amit Dalal of Amit Nalin Securities, said, "I think the market is exactly what one would have expected for an overbought market, which we had last week. The market is going to be rangebound till the end of the settlement and the rollover because of the huge outstanding positions. The ability of the market to go above 20,000 has been completely taken away. Therefore we will see a market perhaps in this 18,000-19,200 range until we see any big positive trigger or a negative trigger for the market."

"The trigger that I would perhaps look forward to in December is, if the Reliance Energy and Sterlite issues are going to take place in December or whether they are going to take place in January. That is one big factor, which will change how we look at energy stocks in this short-term volatility," he continues.

To a large extent the market seems to have understood that things like the UP blasts happen in India. He said, "Of course it's very tragic and one feels terrible because not one but three blast took place. There are two things 1) It's so far away, it's not something that affects us and 2) If it does not affect any strategic manufacturing outfit or strategic business areas, then again it's more a social or sociopolitical event rather than an economic event," he surmises.

Source: Moneycontrol.com