Showing greater resilience, the stock market today bounced from early lows to end 252 points higher in extremely volatile trade amid a global meltdown triggered by fresh credit market jitters.
Reacting negatively to weak global cues, the Bombay Stock Exchange (BSE) 30-share Sensex tumbled by about 469 points to a low of 19,255.77 in the initial five minutes of trading.
The market, however, staged a sharp recovery on the back of hectic short covering at lower levels driving Sensex closer to the psychologically important 20K level.
Finally, the BSE barometer touched a high of 20,025.63 before ending the day at 19,976.23, a net rise of 251.88 points or 1.28% over yesterday’s close of 19,724.35.
With this, the market has made four failed attempts to close above the 20K mark in the week, having crossed the crucial level during four trading sessions.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) also gained 65.95 points or 1.12% to close at 5,932.40 from previous close of 5,866.45.
Foreign Institutional Investors (FIIs) and local players made heavy purchases in last 30 minutes of trading, brokers said, partly attributing the turnaround to low inflation, which dipped to five-year low of 3.02% for the week ended 20 October.
The Dow Jones Industrial Average and the Nasdaq Composite Index yesterday plunged by 2.6% and 2.25% due to fresh fears of more credit crisis fallout, sparking off a global meltdown.
Asian Indices were down in a range of 2.0% to 3.5% at close.
The Bombay Stock Exchange benchmark Sensex tumbled by over 468 points in early trade today on heavy selling by funds, triggered by weak global markets.
The trade, dropped further by 468.58 points at 19,255.77 in first five minutes of trading.
The National Stock Exchange’s Nifty fell by 152.20 points at 5,714.25.
Marketmen said the trading sentiment turned bearish in line with a similar trend in overseas markets.
Telecom, metal, banking and capital good stocks were some of the sectors that were hardest hit.