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Mumbai, Sep 16 (IANS) Indian equities markets Tuesday seemed to have weathered the

financial tsunami following the collapse of Lehman Bros. and buy out of Merrill Lynch Monday
to end the day more or less flat after opening very weak.The recovery clearly showed signs of
short covering, analysts said.

The 30-share benchmark sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended
the day at 13,518.80, down just 12.47 points or 0.09 percent from its previous closing Monday at

The Sensex had, however, opened with a fall of nearly 500 points.

“This early fall gave bears with short positions a chance to book profits as over Friday, Monday
and early Tuesday there was a total fall of about 1,500 points,” said Jagannadham
Thunuguntla, equity head of Delhi-based NEXGEN Capitals Ltd.

NEXGEN is the securities arm of the fourth largest share brokerage house in the country the
SMC Group.

The National Stock Exchange saw a similar trend. It opened very weak, down more than 125
points, but again began to recover on short covering by bears and some bottom fishing.

After two short dips during the day, it finally recovered enough to end the day with a marginal

The broader based 50-share S&P Nifty of the NSE ended the day at 4,074.90, a marginal gain of
2 points or 0.05 percent over its previous close Monday.

The BSE midcap ended at 5,217.25, down 71.34 points or 1.35 percent.

The BSE small cap index ended at 6,289.41, down 91.06 points or 1.43 percent.

“With good news expected out of the world’s largest economy the US later today, bears booked
profits as the markets may start moving up again Wednesday,” Thunuguntla said.
He was referring to the fact that the US central bank is expected to cut a key short-term interest
rate by 25 to 50 basis points from its current 2 percent.

“Given the current situation, they really have no choice but to inject liquidity even if it means
adding a bit to inflation,” he said.

The world’s largest and second largest investment banks Goldman Sachs and Morgan Stanley
are also expected to report earnings Tuesday and Wednesday, respectively.

All this may push up markets Wednesday onwards which led to the short covering, Thunuguntla

Sectorally, realty, consumer durables, health care and metal stocks were the biggest losers.

Oil and gas, banks, public sector units and fast moving consumer goods stocks were in the black.

State Bank of India (SBI), Sterlite Industries, Reliance Industries and HDFC Bank were the
biggest gainers.

SBI moved up Rs.96.60 or 6.49 percent to 1,585.50 from its previous close Monday of 1,488.90.
Sterlite Industries gained Rs.12.40 or 2.66 percent to close at Rs.477.70 up from Rs.465.30.

Reliance Industries moved up Rs.44.35 or 2.35 percent to finish at Rs.1,928.45 up from

Rs.1,884.10. HDFC Bank rose Rs.26.00 or 2.16 percent to close at Rs.1,230.05 up from its
previous close Monday of Rs.1,204.05.

The top losers were ICICI Bank, Jaiprakash Associates, Maruti Suzuki and Ranbaxy

ICICI Bank lost Rs.36.55 or 5.82 percent to finish at Rs.591.35 down from Rs.627.90. Jaiprakash
lost Rs.7.50 or 5.09 percent to end at Rs.139.80 against its previous close Monday of Rs.147.30.

Maruti Suzuki shed Rs.25.65 or 3.55 percent to close at Rs.697.75 down from Rs.723.40.
Ranbaxy Laboratories ended the day at Rs.405.90 down Rs.13.55 or 3.23 percent against its
previous close of Rs.419.45.

The market sentiment was negative with 1,752 shares declining, 886 advancing and 73
remaining unchanged.