Continuing its meltdown for the sixth day in a row, the BSE Sensex today closed 132 points down - recovering from an early loss of 560 points - as government assurances failed to fully beat back the contagion impact of debt crisis in the US and Europe.
In highly volatile trading, stock markets opened with huge losses but
staged a smart recovery, wiping off all the losses by mid-day and moving
into the positive territory.
However, they plunged back into the red.
After opening 472 points down this morning, the Sensex widened its loss
to 558 points within minutes. Thereafter, it recovered more than 700
points from early morning lows and was trading with a gain of over 100
points at one point.
However, it soon moved back into the red zone with over 300-point loss
and after partial recovery closed 132.27 points down at 16857.91 points
-- lowest close since June 9, 2010.
Marketmen said that Finance Minister Pranab Mukherjee's assurance about
strong fundamentals of Indian economy, and Capital Market Joint
Secretary Thomas Mathew's assertion that FIIs were unlikely to resort to
heavy selling, helped the brief recovery but finally the negative
global cues prevailed.
They said market would wait for the policy meeting of US central bank,
scheduled for later tonight, in hope of some announcements aimed at
boosting investor sentiments.
The global markets have been in a turmoil for past two days, after the
creditworthiness of the US was downgraded by Standard and Poor's amid
the American economy's mounting debt worries. The debt problems in
Europe have already been hammering the market for about a week now.
During the intra-day trade, the Sensex dipped to 16,432 points - its
lowest since June 1, 2010. During its brief uptrend, it regained the
17,000-level to scale a high of 17,135.04 points.
The Bombay Stock Exchange 30-share index, Sensex, has lost 1,454 points in the six straight trading sessions.
Another benchmark, National Stock Exchange's 50-scrip Nifty, touched a
low of 4,946.45 points, lowest since May 27, 2010, before closing 45.65
points down at 5,072.85 -- the lowest close since June 9, 2010.
Tata Steel, Tata Motors, TCS, Infosys, Wipro and Coal India were among
biggest losers, while stocks like RIL, ICICI Bank and Hindalco also lost
However, stocks like M&M, DLF, ITC, HDFC, ITC, Maruti and ONGC managed to record smart gains on a volatile day.
The overall market breadth was still very negative with nearly two-third of all listed stocks recording losses.
Oscillating between alternate bouts of rise and fall, the Sensex
traversed a path of more than 2,000 points, leaving the traders and
investors in a tizzy.
Experts said the brief recovery was mostly due to positive openings in
European markets, which later pared their gains and the trend got
reflected on the Indian bourses.
The overnight meltdown in the US and the subsequent fall in Asia this morning added to the woes of Indian bourses.
"The US Fed has a crucial meeting tonight with a possibility of
announcing some measures to sooth investor’s confidence. The outcome of
the meeting is likely to affect the short term sentiments of the world
markets including India," Shanu Goel, Senior Research Analyst, Bonanza
Sensex Closes 132 Points Down Amid Choppy Trade
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