Mkts on recovery road, but slip marginally

Font Size

Print

Feedback

Email

Discuss

Related Articles

Sensex falls 213 pts on FII curb fearsSuzlon to sell 35% stake in Belgian firmNSE, BSE to extend trade timings soonSix cos lose over Rs 19k cr in m-cap

Mumbai, Nov 17: Indian equity markets, which witnessed huge volatility through-out the intra-day trade, made a smart recovery during the last trading hours, but ended the day with marginal loses. Markets had opened the day with a positive gap, but later could not hold the drive and slipped into the red terrain. Global developments failed to add cheer to the market even after the Reserve Bank of India announced a series of measures to enhance liquidity as well as credit to the corporate sector.

The Indian volatility index or the India VIX managed by the National Stock Exchange touched an all time high of 85.13 indicating a high level of uncertainty and panic. The VIX indicates the level of volatility in the market and also indicates the sentiment prevailing in the market. At 30% levels, the market is considered to be stable. And at high levels it indicates panic and fear leading to a sell-off.

However, on Monday, the 30-share Sensex of Bombay Stock Exchange (BSE) lost 94.41 points or 1.01% and ended the day at 9,291.01 points. Dealers in the market said that markets plunged after Japan joined the list of economies in recession. Also, G-20 summit on Saturday and Sunday failed to come out with some solid measures to guide the global economy out of the present crash.

The broader S&P CNX Nifty of National Stock Exchange was down by 10.80 points or 0.38% and closed the day at 2,799.55 points. An analyst from a leading broking house said, “Short-covering and positive opening of European markets boosted the sentiments of the markets during the last trading hours. Numerous measures by the central bank to consider proposal from local firms to buy back foreign currency convertible bonds could not prevent the markets from entering the red territory.” Barring Teck and IT, all sectors in the BSE sectoral indices ended the day on a negative terrain. The Realty and Bankex index were the worst performers of the day. Institutional investors, domestic as well as overseas, were seen doing more of selling than purchasing. Mutual funds were net sellers to the extent of Rs 931.50 crore till Friday, November 14. Foreign institutional investors net sold equities worth Rs 564.20 crore on Monday.