Sensex escapes major slide...Nifty ends above 5000

Sensex ended at 16,858 losing 132 points. Nifty closed at 5,072 losing 46 points.

It was yet another day of agony for equity markets not just in India but across the globe, as jittery investors continued to dump risky assets amid fear that the fiscal stress in the US and Eurozone will hurt the global economy. Just when we thought that the markets are in oversold zone and therefore could bounce back came another wave of sell-off across the world markets after the S&P downgraded the US top rating. In addition, the sentiment remained low as the FIIs continued their off loading on Dalal Street.



Benchmark Indian stock indices were highly volatile as the Nifty gyrated almost 200 points between its day's high and day's low. After hitting a low of 4946 in opening trades, the Nifty bounced back and hit a high of 5167. The upswing was led by the interest rate sensitive Auto and select Banking stocks. Even the FMCG stocks saw some buying.


Finally, the BSE Sensex ended at 16,858 losing 132 points. It had earlier touched a day's high of 17,135 and a day's low of 16,432. It opened at 16,517. The NSE Nifty closed at 5,072 losing 46 points.


IT, Telecom, Metals and Pharma stocks were the top losers. The Mid-Cap and the Small-Cap stocks also closed lower.


"Predicting when the current global tsunami will subside is like catching a falling knife. Avoid needless bravado and wait for the financial storm to pass.


When the dust settles on the global turmoil, India is likely to come out relatively stronger and attract offshore capital. Still, there will be lots of volatility and uncertainty in the short-term. Therefore, one must remain vigilant and cautious," says Amar Ambani, Head of Research, IIFL - India Private Clients.