Market survives bear hug, ends 252 pts up
SHOWING greater resilience, the stock market on Friday bounced from early lows to end 252 points higher in extremely volatile trade amid a global meltdown triggered by fresh credit market jitters. Reacting negatively to weak global cues, the Bombay Stock Exchange (BSE) 30-share Sensex tumbled by about 469 points to a low of 19,255.77 in the initial five minutes of trading. The market, however, staged a sharp recovery on the back of hectic short covering at lower levels driving Sensex closer to the psychologically important 20K level. The BSE barometer touched a high of 20,025.63 before ending the day at 19,976.23, a net rise of 251.88 points or 1.28% over Thursday’s close of 19,724.35. With this, the market has made four failed attempts to close above the 20K mark in the week, having crossed the crucial level during four trading sessions. The broader S&P CNX Nifty of the National Stock Exchange (NSE) also gained 65.95 points or 1.12% to close at 5,932.40 from previous close of 5,866.45. Foreign institutional investors (FIIs) and local players made heavy purchases in last 30 minutes of trading, brokers said, partly attributing the turnaround to low inflation, which dipped to five-year low of 3.02% for the week ended October 20. The Dow Jones Industrial Average and the Nasdaq Composite Index yesterday plunged by 2.6% and 2.25% due to fresh fears of more credit crisis fallout, sparking off a global meltdown. Asian Indices were down in a range of 2% to 3.5% at close. Depicting the rally in banking segment, the sectoral Bankex closed up by a whopping 389.84 points or 3.59% to 11,241.53. The trading volume on BSE dropped to Rs 8,182.91 crore from Rs 11,469.17 crore on Thursday. RPL remained the top traded share with the highest turnover of Rs 793.93 crore followed by RNRL (Rs 605.13 crore), REL (Rs 391.57 crore), Reliance Capital (Rs 365.56 crore) and RIL (Rs 293.56 crore). The broad-based BSE-100 index shot up by 136.96 points to 10,447.68 from previous close of 10,310.72.