Sensex recovers above 8,500-levels

Indian markets have shown smart recovery in the past one hour even as they continue to trade lower, with volatility  still holding down indices.

The benchmark indices are still under pressure, despite the Sensex recovering from the pre-lunch low of 7697.21 to claw its way back above 8500-mark and the Nifty, which had fallen 221.20 points going back above the 2400 level.

However, global indices are trading sharply lower, straining the Indian markets, where the market breadth is in favour of declines; about 512 shares have advanced while 2496 shares have declined. Nearly 182 shares are unchanged.

Buying is seen in Reliance Industries, Bharti Airtel, ICICI Bank, Unitech, SAIL, Ambuja Cements, Idea Cellular, Sterlite Industries, ABB, Reliance Infrastructure, BHEL and Cipla. However, selling continues in ONGC, SBI, HUL, Wipro, NTPC, Tata Power, M&M, Cairn India, Reliance Communication, ITC, L&T, DLF, TCS, HDFC Bank, HDFC and Power Grid.

BSE Midcap and Small Cap indices lost over 6 per cent each. Both frontline indices have recovered over 700 points and 200 points, respectively.

The panic selling continues, as the Asian markets collapsed. Relentless selling pressure from European fund continues. Dealers say that investors are liquidating stocks in panic. Bank and capital goods stocks continue to be under selling pressure. Portfolio stocks are being sold in panic. However, DIIs are nibbling at lower levels.