Sensex ends 71 points down after rollercoaster ride
11 Aug 2011
Indian equity benchmarks closed with moderate loss amid extreme volatility on Thursday. The market remained in a consolidation mode since the morning trade and did not react to yesterday's sharp fall in global markets on talks of credit rating downgrade in France, which commands AAA rating.
In the second half of trade today, European markets and US index futures rebounded sharply, rallying 2-3% but they could not able to hold on to those gains. In reaction to that in the late trade, the 30-share BSE fell 71 points, to close at 17,059. The 50-share NSE Nifty lost 23 points, to end at 5,138.
Bruno Verstrate, CEO of Nautilus Invest is cautious on European markets. He is not a buyer of banks because, according to him, it is just a mater of time before the downgrade comes. ''At this stage, having had the downgrade of the US, many other AAA countries will be downgraded and that will create a big mess in the banks,'' said Verstrate.
At 15:01 hours IST : Market slips into red; Tata Power, Axis Bank top losers
Volatility reigned supreme as markets turned marginally negative, trading on wafer thin volumes, ignoring promising cues from European markets and US futures.
The 50-share NSE Nifty was trading at 5,155, down 5 points and the 30-share BSE Sensex fell just 19 points to 17,111.