Frantic short-coverings a day ahead of the expiry of August contract amid smart recovery in the rupee value from its all-time low on Wednesday helped the benchmark S&P BSE Sensex to bounce back with a vengeance to end up by 28 points at 17,996.15, shrugging of some global as well as domestic negative factors.
A host of negative issues like fall in the rupee to a new historic low of 68.75, fears over the possibility of a United States-led military strike in Syria as also likely tapering off bonds buying programme by the US Federal Reserve from next month, increased capital outflows and fears over passage of Food Security Bill initially weighed on the market sentiment.
As a result, the Bombay Stock Exchange’s (BSE) 30-share barometer resumed weak and continued to slide further to an almost 12-month low of 17,448.71, down by a huge 519.37 points in morning deals. It previously registered intra-day low of 17,294.74 on 6 September, 2012.
Brokers also attributed initial fall to possibility of rise in the current account decifit after global oil prices rising day by day on geo-political concerns and also higher rupee which might impact negatively economy that is already on downturn.
It later started recovering on possible buying by country's biggest institutional investor, Life Insurance Corporation (LIC) amid smart rebound in the rupee and crossed 18K-mark to a high of 18,101.84 before ending at 17,996.15. The wide-based 50-issue CNX Nifty of the NSE also recovered from its initial sharp fall, but failed to end in positive terrain. It closed down by a mere 2.45 points or 0.05 per cent at 13-month low of 5,285.00.
A host of negative issues like fall in the rupee to a new historic low of 68.75, fears over the possibility of a United States-led military strike in Syria as also likely tapering off bonds buying programme by the US Federal Reserve from next month, increased capital outflows and fears over passage of Food Security Bill initially weighed on the market sentiment.
As a result, the Bombay Stock Exchange’s (BSE) 30-share barometer resumed weak and continued to slide further to an almost 12-month low of 17,448.71, down by a huge 519.37 points in morning deals. It previously registered intra-day low of 17,294.74 on 6 September, 2012.
Brokers also attributed initial fall to possibility of rise in the current account decifit after global oil prices rising day by day on geo-political concerns and also higher rupee which might impact negatively economy that is already on downturn.
It later started recovering on possible buying by country's biggest institutional investor, Life Insurance Corporation (LIC) amid smart rebound in the rupee and crossed 18K-mark to a high of 18,101.84 before ending at 17,996.15. The wide-based 50-issue CNX Nifty of the NSE also recovered from its initial sharp fall, but failed to end in positive terrain. It closed down by a mere 2.45 points or 0.05 per cent at 13-month low of 5,285.00.