markets start recovery after free fall
Mumbai, Sep 15 (IANS) After panic selling throughout Monday
morning, Indian equity markets began to recover early afternoon
with "bottom fishing" or buying at the bottom by
At around 1.30 p.m., the 30-share benchmark sensitive index
of the Bombay Stock Exchange, the Sensex, had recovered by
more than 130 points to 13,387.43, though it was still down
613.38 points or 4.38 percent from its previous close.
Earlier in the day it had fallen by over 750 points or about
"Panic selling seems to have stopped and there is bottom
fishing by institutional buyers looking for cheap stocks at
the bottom," said portfolio strategist Manoj Krishnan
of Delhi-based Price Investment Management & Research
"I expect the Sensex to recover and end the day with
only a 500-550 point loss," he said.
The news that the Federal Open Market Committee (FOMC) of
the US will hold a special unscheduled meeting Tuesday, for
the first time in a decade, has also begun to boost sentiment
in the New York Stock Exchange.
"The Americans will never let their financial system
down and already the Dow Jones futures index has begun to
recover from being 330 points down to just 278 points down
now," Krishnan said.
He said the FOMC meeting Tuesday should send out very positive
cues and Indian markets would also recover by Wednesday.
By 1.50 p.m., the broader based 50-share S&P Nifty index
of the National Stock Exchange also began to show signs of
It had recovered more than 54 points to 4,038.20, still down
190.25 points or 4.5 percent from its previous close Friday.
Earlier, it had fallen by 244.25 points or 5.78 percent to
breach the 4,000 mark to 3,984.20 points as against its previous
close Friday at 4,228.45.
The panic selling in the morning was sparked off not only
by the serial blasts Saturday in the country's capital New
Delhi but also by news that the world's fourth largest investment
bank Lehman Bros had filed for Chapter 11 bankruptcy under
US laws early Monday morning.
"The FOMC meeting should address this issue and is expected
to send out positive cues," Krishnan said.
The recovery spread to midcap and smallcap stocks as well.
At around 1.30 p.m., the BSE midcap index recovered to 5,236.36
points, down 300.78 points or 5.43 percent. Earlier in the
day it had fallen by 322.75 points or 5.83 percent to 5,214.39.
The BSE small cap index too recovered to 6,344.92, down 366.62
points or 5.46 percent. Earlier in the day it had fallen by
374.95 points or 5.59 percent to 6,336.59.
Indo-Asian News Service
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