Sensex trims early morning crash of 1,088 pts

Sensex trims early morning crash of 1,088 pts

Mumbai: The Bombay Stock Exchange benchmark, Sensex, on Friday staged partial recovery after the Reserve Bank of India reduced CRR by further 1% and pared nearly half the early morning losses of over 1,000 points.

The Sensex was quoted at 10,904.13, down by 424 points at 10:50am after most of the heavy-weight stocks pared early losses. In early morning trade, Sensex had plummeted by 1,088 points at 10,239.76 points.

Similarly, the wide-based National Stock Exchange’s Nifty was trading 99 points down at 3,334.65 after hitting a low of 3,198.95 points in early trade.

Market analysts said the Reserve Bank of India’s announcement of additional one per cent cut in Cash Reserve Ratio (CRR) to 7.50% would improve liquidity situation in the market.

The RBI’s announcement to inject about Rs60,000 crore into the cash-strapped system lifted the market sentiments, which brought some relief to the tumbling market, brokers said.

The BSE banking index was down by 5.42 points at 5,459.25 after diving by nearly 11 % in opening trade as foreign funds dumped heavy-weight stocks owing to spreading global financial crisis amid depreciating Indian rupee.

Marketmen said melting global markets on fears the global financial crisis will lead to a global recession, mainly sparked panic selling by major players.

Infosys Technologies fell by Rs54.35 at Rs1,200 despite better quarterly earnings.

Besides, other losers were Reliance Industries, Reliance Infra, RCom, ICICI Bank, State Bank of India, Bharti Airtel, Satyam Computers, Tata Consultancy, Wipro, BHEL, Larsen and Toubro, Grasim Industries, HDFC Ltd and ACC.