Indian shares recover after early crash on global meltdown


Mumbai : Amid a depressing mood in global markets and some heavy selling by foreign and domestic funds, a key Indian stock market index crashed over 500 points but recovered significantly later to close 231 points below its previous mark.

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The 30-share Sensex of the Bombay Stock Exchange (BSE), which opened lower at 14,674.92 against the previous day’s close of 15,100.15, was down as much as 529.26 points, or 3.5 percent, in the early hours of trading.

After range-bound trading, the index moved up nearly 300 points and finally closed at 14,868.25 points, down 231.90 points, or 1.54 percent. Twenty of its components closed in the red.

The broader 50-share National Stock Exchange (NSE) Nifty index closed at 4,333.35, down 69.85 or 1.59 percent, after recovering over 300 points in late trade.

Telecom and banking stocks took a beating, with leading private telecom service provider Bharti Airtel heading the major losers.

The stock was down 3.54 percent at Rs. 838.80, followed by Housing Development Finance Corp that was down 3.38 percent at Rs.1,947.30, and top aluminium maker Hindalco Industries that was down 3.11 percent at Rs.151.15.

Reliance Communications, state-run energy producer National Thermal Power Corp, private sector ICICI Bank, hydrocarbons explorer Oil and Natural Gas Corp, consumer goods major Hindustan Unilever and public sector State Bank of India were the other major shares that traded in the red.

A late recovery in technology stocks on the back of a fall in the rupee against the dollar pulled the indices out of the slide, with fourth largest software exporter Satyam Computers leading the recovery by gaining 2.63 percent at Rs.479.40.

The other stocks that did well included two-wheeler maker Bajaj Auto, up 1.21 percent at Rs. 2,318.70, and leading car maker Tata Motors, up 0.91 percent at Rs.669.05.