Sensex gains after a roller-coaster ride
After losing 704 points during the day, the BSE Sensex ended with marginal gains after the Finance Minister assured that the Indian banking system was virtually unaffected by the US crisis.business Updated: Sep 18, 2008 23:27 IST
The share market took investors on a roller-coaster ride before ending Thursday with marginal gains after Finance Minister P Chidambaram assured that the Indian banking system was virtually unaffected by the US crisis.
Opening with a downward gap of 550 points, the benchmark Sensex of the Bombay Stock Exchange hit a day’s low of 12,558 points (down 704 points).
Bulls took charge towards the latter part of the day as global markets recovered after central banks over the world joined hands to ward off a credit crunch and injected money into the financial system.
The Sensex ended the day higher by 53 points or 0.40 per cent at 13,315.60 points. The wider Nifty of the National Stock Exchange closed at 4038 points, up by 0.75 per cent.
“After a panicky opening, value buying came in at lower levels after the consortium of central banks took measures to provide liquidity into their respective financial systems,” said Rajesh Jain, CEO, Pranav Securities.
Despite the sharp recovery, market breadth was still negative on the BSE with only 676 stocks advancing against 1,944 declines. However, the way the markets recovered shows that there is strength in the bounce back, say analysts. “The turnover in cash segment was pretty robust. This shows there is strength in recovery. However, what remains to be seen is if Nifty will be able to go past 4200-4250 levels,” said Jain.
Current-month Nifty futures ended at 4,044 points, higher than the underlying Nifty, as investors went long (bought) on the index expecting further upside.