With a pick-up in short covering, Sensex has managed to see a meaningful recovery of 400 points from the day's low point. Rating agency S&P's statement that there would be no immediate impact of US rating cut on India provided the much-needed relief. This was in contrast to the talks doing the rounds yesterday that S&P downgrade may hit other countries and companies.
The 30-share BSE Sensex was trading at 16,843, down 147 points after 400 points recovery from day's low of 16,432. The 50-share NSE Nifty was trading down 43 points at 5,075.
Short covering impact: Sterlite Industries and DLF gained 2%. SBI, BHEL, Kotak Mahindra Bank and IDFC went up 0.5%.
Fresh longs were seen in ONGC, M&M, Baja Auto and Ambuja Cements, which moved up 1-3%.
Asian markets too recovered 3-5% from day's low. China's Shanghai, which fell 2.5% in early trade, was flat. Kospi, which tumbled 9%, lost just 3.4%.
Advance:decline ratio, which was 1:15 in early trade, improved to 1:4.
At 11:21 hours IST: Market recovers from day's low; IT down 3%
The Indian equity market was trading off the day’s low point, though all sectoral indices were still in red. The NSE Nifty was trading above the 5050 mark. Stocks like Reliance, Infosys, ICICI Bank, TCS and L&T were major laggards in the bourses.
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