The Bombay Stock Exchange (BSE) Sensex closed the day at 19,976.23 points, up 251.88 points. Markets across Asia slumped on Friday, tracking losses on Wall Street overnight, as investors worried about a possible end to US interest rate cuts and a slowing American economy?a vital market for Asia?s exporters.
Also, as the downgrade of Citigroup by brokerage firm CIBC to ?sector perform? from ?sector outperform?, added to the huge sell-off in Asian markets. Major Asian markets were down: the Taiwan weightage was down 3.39%, the Hang Seng was down 3.25% while the Nikkei was down 2.09%.
Mirroring Asian trends, the 30-share Sensex also opened lower by 1.82%, or around 360 points. Volatility remained high throughout the day as the benchmark index touched an intra-day low of 19,255.77 points. However, the Sensex made a smart recovery during the fag end of the day lead by heavyweights like Reliance Industries.
The Sensex finally ended at 19,976.23 points, up 251.88 points, or 1.28%. The broader S&P CNX Nifty of the National Stock Exchange, meanwhile, closed the day with gains of 65.59 points or 1.12% to close at 5,932.40 points.
Ajay Bagga, CEO, Lotus India AMC, said, ?The market is expected to consolidate at high levels after the recent rally. The Q2 September 2007 earnings season has ended. The market is expected to take a pause before making the next move in the absence of near-term triggers. Spells of high volatility cannot be ruled out.?
Among the top losers in the Sensex pack were the shares of Bharti Airtel, which slipped by 5.10%, or Rs 48, to close at Rs 894.85. The government on Thursday accepted the Telecom Engineering Centre’s report that suggested tough norms for spectrum allocation to GSM operators, a move that may make it difficult for existing large players like Bharti, Vodafone and Idea to get additional frequency. Reliance Energy was the biggest gainer of the day, its share price rising by 4.78%, or Rs 85.55, to close at Rs 1,852.35.
The market breadth was marginally positive with 1,371 scrips advancing, compared to 1,336 that declined, while 371 remained unchanged. Altogether, 21 of the 30 Sensex stocks rose.
