Sensex extends 6-day fall, ends 132 points lower

Markets close a highly volatile session with losses as nervous investors continued to dump risky assets

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Indian indices

Indian markets made a spectacular recovery in late morning trade as investors bought stocks at bargain prices. The strong upmove was on the back of a recovery in global sentiments.

The recovery was in contrast to over 500 points plunge that the Sensex witnessed in early trade. The Nifty had slipped below 5,000 for the first time since June, 2010.

A late sell-off, on the back of sharp fall in European stocks, took the Indian markets lower thereafter. The market saw huge swings and closed the trade with losses for the sixth successive session. Mounting fears over the health of global economy continued to hamper investor sentiment. However, the Indian markets have outperformed their global counterparts amid the ongoing sell-off.

Sensex movements: Terrible fall across the globe pulled the Sensex lower by 472 points at 16518 in the opening trade. Later, the index began to trim losses and erased all its losses to turn positive in the late morning trade, hitting the day’s high of 17135. However, the gains were short-lived as the Sensex slipped again in red on selling pressure and fall in European indices. The Sensex fell 132 points to settle at 16858 and the Nifty closed lower by 46 points at 5073.

Market sentiment

The market breadth was in favour of declines. Out of 2,969 shares traded on the BSE, 2,036 shares lost and 829 shares advanced. However, 104 shares remained unchanged.

Viewing volumes

Wind turbine major - Suzlon Energy was the most traded share, with over 1.37 crore shares changing hands on the BSE. Following that an integrated infrastructure development company - Lanco Infratech (0.47 crore shares), India's second largest developer - Unitech (0.47 crore shares), a Jaypee Group firm - Jaiprakash Associates (0.38 crore shares) and a major Indian telecommunication company - Reliance Communications (0.27 crore shares).

Sectoral & stock screening

Out of the 13 sectoral indices, only two managed to rise. BSE FMCG gained by 1.36% and BSE Auto went up by 0.48%. Major losers - BSE Information Technology (IT) plunged by 3.47%, BSE TECk down by 2.74% and BSE Metal slipped by 2.73%. Rest fell between 0.31-2.47%.

In 'A' group stocks, Marico was the biggest gainer surging by 5.19%, Mahindra & Mahindra rose by 4.29% and Apollo Tyres went up by 4.20%. On the flip side, Suzlon Energy was the major loser declining by 11.04%, Aban Offshore by 8.31% and BF Utilities dropped by 7.21%.

Global indices

The European stock markets traded lower on Tuesday, as fears about another recession in the US and debt contagion across the euro zone continued to dominate investor psyche, hitting financials and oil and gas sectors.

The Asian indices closed the trade lower on Tuesday on global worries.

The US stock index futures pointed to further steep losses on the Wall Street on Tuesday, after the previous session's plunge, as investors worry that the world's largest economy could fall back into recession.

Market Outlook: In the US, Federal Funds Rate will be released on Tuesday.