Mumbai: Despite closing in deep red, Indian equity benchmarks recovered more than half of its losses in the second half of the trade, outperforming global peers. The world markets crashed post dismal report on US job growth and euro debt worries.
The 30-share BSE Sensex fell closed 108 points lower at 16,713 after seeing a recovery of over 100 points from day's low of 16,561.46.
The 50-share NSE Nifty managed to hold the 5,000 mark. Experts feel that 5000 is likely to be a crucial support level for the market. The index dropped 23 points from its previous close to end at 5,017.
On the global front, European markets like France's CAC, Germany's DAX and Britain's FTSE were down 2-3 per cent. The Dow Jones futures too fell 110 points. Asian markets closed down 2-4 per cent.
Rajat Rajgarhia, head of research, Motilal Oswal Securities, said that global trade may continue to remain uncertain and hence, domestic sectors that have got hit by global headwinds will see reduced exposure by investors even if the respective stocks witness a bounce back.
Market is still unclear whether it has any catalyst in the near term, which will help boosting the trade, feels Rajgarhia.
However, the chairman of LIC, DK Mehrotra said that irrespective of the global newsflow, India’s growth story was intact largely due to the economy being domestic consumption driven.
Oil & gas, healthcare, private banks, PSU power and select technology companies' shares were put pressure on the market. However, the recovery was led by auto, Anil Dhirubhai Ambani Group and select metal stocks.
ONGC was the main dragger as sources claimed that the company will launch its follow-on public offer on September 20. The stock tumbled 2.6 per cent.
Heavyweights Reliance Industries, Infosys, NTPC, HDFC, Bharti Airtel and BHEL were down 1-2 per cent. Wipro and Cairn India were top losers; both plunged 4 per cent each.
However, Hero Motocorp was the prominent gainer; the stock shot up 5.3 per cent today while it rallied nearly 15 per cent in five days.
Reliance Infrastructure surged 5.5 per cent as authorities for the Mumbai Metro 1 project, a result of a consortium led by Reliance Infrastructure in partnership with the MMRDA and Veolia Transport, estimate that the Metro will be fully functional by 2012.
Reliance Communications has been reorganizing its wireless business; the stock jumped 4 per cent. Axis Bank, SAIL, Jaiprakash Associates and Reliance Capital rallied 3-5 per cent.
Heavyweights TCS, L&T and SBI too led the recovery; these stocks gained 0.5-1 per cent.
Everonn Education locked at 20 per cent lower circuit for the second consecutive session today; company's MD P Kishore was arrested by CBI in bribery case.
New listing: Brooks Laboratories, which rallied 31 per cent in early trade, fell 40 per cent to Rs 60.20 at close.
About 695 shares advanced while 734 shares declined on National Stock Exchange. Total traded turnover was nearly Rs 96,000 crore.
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