Indian bourses rebound on valuations, global cues

By IANS,

Mumbai : The Indian equities markets benchmark indices rebounded nearly two percent this week after slumping almost five percent the previous week as traders covered their short position on valuations and positive cues from other bourses.


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The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended the week at 16,453.76 points, 1.80 percent or 291.70 points higher from its previous week close at 16,162.06 points.

The Sensex had slumped 4.56 percent in the previous week due to turmoil in the global markets.

The markets opened the week on a weak note but registered a smart rally Tuesday with benchmark Sensex gaining 473 points. The markets witnessed selling pressure towards the end of the week and the Sensex closed 1.46 percent or 244 points down Friday to end the week 1.80 percent or 291.70 points higher than the previous.

At the National Stock Exchange, the 50-scrip S&P CNX Nifty also gained almost two percent in the weekly trade. The Nifty closed 1.44 percent down at 4,943.25 points Friday.

The Indian bourses have witnessed extremely volatile trading in the recent months.

The 30-scrip Sensex slumped 12.8 percent in the second quarter of the current fiscal, the sharpest fall since October-December quarter of 2008, when the index had tumbled almost 25 percent amid the global financial crisis.

The Sensex had registered the biggest quarterly fall in October-December 2008 quarter after Lehman Brothers filed for bankruptcy in September 2008.

Prominent losers on the benchmark Sensex Friday were: Coal India, down 5.15 percent at Rs.332.75; Tata Steel, down 3.99 percent at Rs.415.25; Hero MotoCorp, down 3.01 percent at Rs.1,941.85; and DLF, down 2.21 percent at Rs.218.65.

Major gainers included Bharti Airtel, up 0.44 percent at Rs.378.10. Reliance Industries closed on a flat note at Rs.808.30, nudging up 0.02 percent.

Other Asian markets also declined Friday as traders booked profits amid continuing concerns over the state of the global economy.

The Japanese Nikkei closed flat at 8,700.29 points, while the Chinese Shanghai Composite index ended 0.26 percent down at 2,359.22 points. Hong Kong’s market closed 2.32 percent lower at 17,592.41 points Friday.

European and American markets also slumped. Among the European markets Britain’s FTSE fell 1.32 percent at 5,128.48 points, the German DAX declined 2.44 percent at 5,502.02 points and the French CAC 40 closed 1.51 percent down at 2,981.96 points Friday.

The Dow Jones Industrial Average of United States slumped 2.16 percent at 10,913.40 points and S&P 500 index fell 2.50 percent to close at 1,131.42 points Friday, the last trading day of the week.

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