After opening the day with the negative gap, Indian equity indices made a smart recovery towards the end of the trading session on the back of short covering, decline in crude prices and expectation of slashing down in interest rates by the US Federal Reserve crucial meet which is scheduled on Tuesday to guard US financial system.
Many of the companies that were in the Lehman Brother?s portfolio in India witnessed a slide but sustained panic was absent. The reasoning is that some of the holdings, like Edelweiss, Spice Communications and Opto Circuits have a lock in period and cannot be sold immediately. Also, the fact that even when Lehman Brothers files for bankruptcy, the process of liquidation will not happen overnight. Hence, there was no need for immediate panic, reckon experts.
Meanwhile, Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice, said a company release. ?Our asset management company, Lehman Brothers Asset Management Limited will continue to operate on a business as usual basis,? it added.
The 30-share Sensex of Bombay Stock Exchange closed the day at 13,518.80 points down by 12.47 points or 0.09%, while the broader S&P CNX Nifty of National Stock Exchange (NSE) managed to end the day with marginal gains. Nifty added 2 points or 0.05% and finally closed the day at 4,074.90 points.