Market closes at 8509

27 October 2008

The Sensex fell below the 8000-mark and the Nifty tested 2300 level in yet another day of capitulation on the market as negative sentiment across the globe caused panic selling by local players. Dealers feel the sentiment is still weak as flows continue to be negative at FII desk.

However, the market was seen V-shape recovery in the second half of session on the back of short covering and buying support by domestic institutional investors. Domestic insurance companies bought index stocks in the late trade. Volumes were low at institutional desk ahead of truncated weak.

Buying was seen in telecom, selective realty, oil and metal stocks. However, selling continued in auto, FMCG, pharma, capital goods, banking (barring ICICI Bank) and power (barring Reliance Infrastructure) stocks.

The 30-share BSE Sensex has touched an intraday low as well as October 2005 level of 7,697.39 (down 1,003.68 from previous close), before ending the day at 8,509.56, down 191.51 points or 2.2%. The 50-share NSE Nifty fell 59.8 points or 2.31%, to settle at 2524.20. It has hit a low of 2252.75 (down 331.25 from previous close).

Both indices have recovered 812.17 points and 271.45 points from day's low, respectively. A 20 Nifty stocks have recovered over 15% from day's low. The BSE Midcap Index fell 129.45 points or 4.18%, to close at 2,966.23. The BSE Small Cap Index lost 182.99 points or 5%, to settle at 3,478.84.

Lackluster rollovers seen in today's session; Nifty rollover stood at 47.1% while Marketwide rollover at 43.9%. The Nifty open interest PCR was at 0.66; implied volatilities increased further. Nifty November Futures added 62.6 lakh shares and ended at a discount of 4.2 points. October Futures saw a mild premium of 1.8 points.