Sensex recovers 52 points at close
The stock market rebounded strongly before the end of the day, after a huge swing on revival of buying by funds.india Updated: May 16, 2006 17:54 IST
The stock market rebounded strongly after a huge swing and ended 51.53 points up at 11,873.73 thanks to huge buying interest from domestic financial institutions and mutual funds.
During the day, the Bombay Stock Exchange (BSE) Benchmark 30-share Index (Sensex) slid down by 576 points, the second largest swing in its history. It had swung by 793.39 points on May 17, 2004.
After touching the intra-day low of 11,378.96points, the Sensex made a strong turnaround in response to Finance Minister P Chidambaram's statement that the slide was a correction and gradually moved upwards to end the day at 11,873.73 points, a rise of 0.44 per cent over Monday's close of 11,822.20.
Similarly, the National Stock Exchange's (NSE) S&P CNX Nifty recouped from the day's low of 3,382.40 points and ended up by 20.35 points to close at 3,523.30 from last close of 3,502.95.
Chidambaram termed the initial steep intra-day fall in the market as a correction triggered by factors, including a fall in metal prices.
Prompted by the statement, mutual funds and financial institutions made heavy purchases absorbing sales made by Foreign Institutional Investors (FIIs) during the day.
Attributing initial slide to heavy FII pull out, brokers said FIIs made net sales of Rs 1235.83 crore in the futures and about Rs 812 crore in the cash segment on May 15, the day Sensex recorded the third largest single day fall.
The stock market has undergone a healthy correction of 1,292 points in four trading days from an all-time high of 12,671.11 touched on May 11 to today's low of 11,378.96.