Markets recover from lows; Sensex down 600 pts

MUMBAI: After most of the bad news was out in the open, equities bounced back with benchmarks recovering from day’s lows as traders covered short pos
itions.

At 2:40 pm, the Bombay Stock Exchange’s Sensex was at 10709.80, down 618.56 points or 5.46 per cent. It touched an intra-day low of 10239.76.

National Stock Exchange’s Nifty was at 3329.45, down 184.20 points or 5.24 per cent. The 50-share index touched a low of 3198.95.

BSE Midcap Index was down 7.72 per cent and BSE Smallcap Index declined 6.63 per cent.

Mayur Shah, independent technical analyst, said, “With the market getting into a sharp bearish phase, I think it is an excellent opportunity to buy. Contrary to the widely-accepted opinion of employing a selling strategy, considering the 'capitulation' stage in which the market is entering into, I would recommend investors to stick their neck out and go for buying into the markets. Sectors like PSU banking stocks and few of power stocks investors are holding on. Investors can take notice of this. I am of the opinion that by next week, the index coming down to four-digit level wouldn't be an aberration.”

Gains in State Bank of India (3.17%), Ranbaxy Laboratories (2.74%) and Infosys Technologies (1.75%) aided the recovery.

ICICI Bank (-15.77%), Reliance Communications (-13.07%), Reliance Infrastructure (12.72%), Jaiprakash Associates (-10.72%), Tata Steel (-9.99%) and Larsen & Toubro (-6.59%) were under pressure.

Market breadth was negative on the BSE with 2196 declines and 336 advances

Source - Economic Times