Markets recover sharply from day's low; Nifty ends above 3500

08 October 2008

It was an terrible session for the markets, as benchmark indices got crushed in line with global markets meltdown, but they have well managed to recover in second half of session and ended off day's low. All indices closed in red. Major sell off was seen in FMCG, technology, banking and capital goods stocks. Midcap and small cap stocks are worst hit. Finance Minister statement was also helpful for markets a bit.

Benchmark indices had started with sharp cut following weak global markets, as Fed Chairman Ben Bernanke had made cautious comments on US financial space. First couple of hours were dreadful for the markets but in the second half of session, markets recovered sharply from day's low.

The Sensex has recovered 587.6 points and Nifty 184.2 points from an intraday low of 10,740.76 and 3329.45, respectively. The Sensex closed at 11,328.36, down 366.88 points or 3.14%. The Nifty fell 92.95 points or 2.58%, to settle at 3513.65.

Finance Minister, P Chidambaram said, "Markets are reacting to what is happening in the US and Asian markets. In fact after the statement by Fed Chairman Ben Bernanke yesterday evening and the manner in which the Asian markets opened this morning, we anticipated that there would be some selling pressure in the Indian markets. Fundamentally, there is nothing wrong in the economy. The fundamentals do not warrant any hasty or precipitous action on the part of investors to sell."

"All our banks are well capitalised, bank capital is between 10% and 13.65% which is well above Basel norms. Everybody in the world accepts the fact that our banks are well capitalised", he said.

Among the frontliners, Jaiprakash Associates, Wipro, Sterlite Industries, ICICI Bank, SBI, Suzlon Energy, Zee Entertainment, BPCL and Siemens dropped 6-10%.