Markets prove resilient despite gloomy news (Round-up)December 12th, 2008 - 7:10 pm ICT by IANS
Mumbai, Dec 12 (IANS) The Indian equities markets rode over depressing sentiments from different quarters with a key index of the Indian stock market registering some strong recovery during the day.The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) recovered over 400 points from the day’s low to close at 9,690.07 points, an increase of 44.61 points or 0.46 percent higher than its close Thursday.
The Sensex plummeted Friday morning as news of the $15-billion US auto bailout failure came in. Investors were also apprehensive over the slower growth in the manufacturing sector in October, as reflected in data realesed during the day. Yet, it recovered in intra-day trading.
“Our markets are in an uptrend, which is why a lot of bad news would get discounted. Though the failure of auto bailout in the US has had a negative impact on global markets, ours will continue to move up,” said Neera Jain, chief technical analyst at stock analyses firm CRN India.
The broader-based 50-share S&P CNX Nifty of the National Stock Exchange (NSE) also recovered over 100 points from its lowest level and closed at 2,921.75, a gain of 0.04 percent from its close of 2,920.15 Thursday.
“Our markets could not have fallen too much even in the wake of depressing news coming from global quarters as the current movement is upward and positive. There might be a consolidation in the next week but we might still see an increase of about 400 points on the Nifty before that happens”, Jain added.
The BSE smallcap index gained the most, closing at a high of 87.37 points or 2.54 percent over its previous close.
The BSE midcap index also out-performed the Sensex with a gain of 47.40 points or 1.58 percent over Thursday’s close.
Asian markets were not very encouraging and were far more affected by the US auto bailout failure. Nikkei, a key index of the Tokyo Stock Exchange, was ruling 5.56 percent lower than Thursday’s close while the Hang Seng, key index of the Hong Kong Stock Exchange, fell by 5.48 percent over its previous close.