Sensex recovers early losses, still ends down by 29 pts
Easing FDI norms as well as good buying support in key counters at the day's lower levels helped the Sensex to recover a major part of initial losses but still ending lower by 29 points, snapping three consecutive sessions of rise.business Updated: Feb 12, 2009 07:37 IST
Easing foreign direct investment (FDI) norms as well as good buying support in key counters at the day's lower levels helped the benchmark Sensex to recover a major part of initial losses but still ending lower by 29 points, snapping three consecutive sessions of rise.
The market resumed sharply lower on doubts over the effectiveness of the US government's latest rescue plan to stimulate the sagging economy, pushing the Dow Jones Industrial Average and the Nasdaq Composite Index down by a whopping 4.62 per cent and 4.20 per cent, respectively, last night.
However, news that the government on Wednesday changed FDI policy and excluded indirect investment through domestic companies from overall sectoral ceilings, giving scope to foreign firms to increase equity in their Indian joint ventures, gave a much-needed boost to the Sensex recover from the day's low level.
The Bombay Stock Exchange 30-share Sensex resumed sharply lower at 9,462.14 as against Tuesday's close of 9,647.47 but recovered major part of its early losses to settle the day at 9,618.54, a fall of 28.93 points or 0.30 per cent.
The index had gained by 556.59 points or 6.12 per cent in the last three trading sessions.
The broader 50-share Nifty of the National Stock Exchange also declined by 8.80 points or 0.30 per cent to 2,925.70 from the last close.