Markets recover but close flat amid financial crisis

Mumbai: Markets took a U-turn in late trade and bounced back quite sharply as buying was seen in public sector banks and oil stocks.

Short covering also triggered the rally. Benchmark indices closed mixed and the Nifty has broken five-day losing streak.

This late trade recovery was led by Reliance Industries, SBI, HDFC Bank, BHEL and Reliance Power.

Markets had started lower with sharp reaction to bad global cues as credit concerns are still not over yet in the US financial space.

Indices remained weak till 1430 hrs IST and was witnessing a bit of volatility but Dow Jones and Nasdaq Futures trading marginally in green have given positive indication that might be a relief rally in US markets.

It was in the anticipation that Fed may cut rates by 25-50 bps, which will provide liquidity in markets to some extent.

The Sensex has recovered nearly 467 points and the Nifty 155 points from days low of 13,051.73 and 3919.35, respectively. The Sensex closed with a loss of 12.47 points or 0.09 per cent at 13,518.80 while the Nifty rose 2 points or 0.05 per cent, to settle at 4074.90.

Among the frontliners, Tata Communication shot up 7.77 per cent, SBI 6.49 per cent, Sterlite Industries 2.66 per cent, Reliance Industries 2.35 per cent, HDFC Bank 2.16 per cent, ITC 2.16 per cent, NALCO 4.07 per cent, BPCL 3.88 per cent and Hero Honda 3.36 per cent.

However, ICICI Bank plunged 5.82 per cent, Jaiprakash Associates -5.09 per cent, Maruti Suzuki -3.55 per cent, Ranbaxy Labs -3.23 per cent, Satyam -3.21 per cent, Suzlon Energy -5 per cent, Sun Pharma -3.58 per cent and Cairn India -3.52 per cent.

BSE Oil & Gas Index gained 113.67 points or 1.29 per cent, to close at 8,928.13. Bankex rose by 60.39 points or 0.89 per cent to 6,852.41. FMCG Index was up by 0.21 per cent to 2,180.56. However, realty index remained under extreme selling pressure, lost 170.56 points or 3.93 per cent, to settle at 4,163.96.

Healthcare Index fell 88.61 points or 2.2 per cent to 3,940.66. Metal Index plunged by 214.35 points or 2.06 per cent, to end at 10,176.49. IT Index ended with a loss of 1.44 per cent at 3,545.05. Capital Goods fell 0.75 per cent, to settle at 11,281.99. Power Index lost 0.33 per cent to 2,427.07. Auto Index ended flat at 3,880.02.

BSE Midcap Index slipped 71.34 points or 1.35 per cent to 5,217.25 and Small Cap Index fell 91.06 points or 1.43 per cent to 91.06.

Turnover was a bit of on the same levels of Mondays. It stood at Rs 74,013.27 crore. This includes Rs 12,307.11 crore from NSE Cash segment, Rs 56,509.60 crore from NSE F&O and balance Rs 5,196.56 crore from BSE Cash segment.

On the global front, Asian markets ended sharply lower. Shanghai fell 4.47 per cent, Hang Seng -5.44 per cent, Nikkei -4.95 per cent, Kospi -6.10 per cent, Taiwan Weighted -4.89 per cent and Straits Times -1.01 per cent.

European markets were trading weak. FTSE was down nearly 2 per cent, CAC and DAX fell one per cent each, at the time of writing market report.