Sensex rebounds to close up by 44 points
The Bombay Stock Exchange Sensex today beat other Asain markets to close higher by more than over 40 points after recovering its early sharp losses.business Updated: Dec 12, 2008 17:11 IST
The Bombay Stock Exchange benchmark Sensex on Friday beat other Asain markets to close higher by more than over 40 points after recovering its early sharp losses.
The bellwether index on BSE settled the day at 9,690.07, up by 44.61 points.
The National Stock Exchange index Nifty also closed higher by 1.20 points at 2,921.35.
Marketmen attributed the sudden bout of buying in late afternoon trade, which helped the Sensex rebound, to short covering by investors to cover their pending positions.
The markets had opened particularly weak with the barometer shedding over 300 points on reports of a weak trends in Asian markets which took cues from close to 4 per cent loss seen in major benchmark indices in the US following rejection of a bailout plan for the troubled auto majors General Motors, Ford, Chrysler.
Selling on BSE was further intensified after industrial output in October saw negative growth for the first time in 15 years. The index of industrial production shrunk by 0.4 per cent in October against 12.20 per cent in the same month a year ago.
Brokers said the positive sentiment generated by continuous fall in inflation has been negated by the abysmal fall in industrial output. Though the market has already factored a lower economic growth rate this fiscal, the dismal picture of industrial production came as a jolt.
Realty stocks which have been on an upsurge for most part of the last week and this week stole the limelight on Friday with the sectoral index at 3.94 per cent emerging as the biggest gainer among all indices. Real estate major DLF Ltd which lost over two per cet on Thursday, soared 7.73 per cent to come out as the biggest Sensex gainer of the day.