After a bearish phase of six days, the Sensex made a 0.4 per cent gain to close at 13,315.60, while Nifty index of National Stock Exchange (NSE) also saw a slender 0.75 per cent gain to end the day at 4038.15. After yet another bearish opening today, the Sensex recovered 757.46 points and Nifty 238.6 points from day's low of 12,558.14 and 3799.55, respectively. The Nifty struggled a lot to stay above 4000.
Mr Chidambaram had said the global turmoil would partly impact credit availability in India and the public sector banks had virtually no exposure to the debt of Lehman Brothers, which filed for bankruptcy in the United States earlier this week.
Many heavyweight stocks turned positive in the second half of today's trading with Mr Chidambaram's statement boosting market sentiments.
Benchmark indices closed with marginal gains, supported by banking, oil, few capital goods, power and auto stocks. However, realty, technology, telecom, pharma and few metal stocks remained under pressure followed by midcap and small cap stocks.
Short covering was seen in banking stocks, which supported markets to end in green. Domestic funds too nibbled at lower levels in today's trade, while Bank and corporate treasury too were buyers.
The bourses also witnessed a huge turnover at Rs 97,530.10 crore. This included Rs 16,075.73 crore from NSE cash segment, Rs 74,094.75 crore from NSE F &O and Rs 7,359.62 crore from BSE cash segment. The total turnover on BSE amounted to Rs 7383 crore, much higher than a turnover of Rs 5813 crore yesterday. A series of bulk deals boosted the turnover.
Banking shares were the star performers of the day. HDFC Bank, the country's largest private sector bank in terms of net profit, rose 3.82 per cent to Rs 1229.70 after touching a low of Rs 1090. It was the top gainer from the Sensex pack. ICICI Bank, which had been down the dumps during the last few days after it announced its exposure to the Lehman Brothers, made a modest gain at close today at Rs.575.85 up by 2,78 per cent or Rs.15.55.
The BSE major indices fluctuated in a mixed trend as BSE OILS &GAS index rose smartly by 206 points to ended up at 8972.89 points, followed by BANKEX index by 176.67 to 6769.63 points, CG index by 105.59 to 11,248.50 points, AUTO index by 28.17 to 3906.07 points and POWER index by 19.68 to 2405.58 points. But BSE REALTY index declined steeply by 178.82 to close in red at 3813.11 points, SML CAP index dropped by 139.32 to 6075.43 points, CD index major crashed by 133.11 to 3161.87 points, METAL index came down by 124.88 to 9690.05 points, IT index also eased by 86.92 to 3437.40 points and MID CAP index was down by 60.50 to 5079.13 points.
Top heavyweight stocks rallied on fresh speculative demand by local operators. Reliance shot up by Rs 59.25 to close firm at 1932.85, HDFC hiked by Rs 37.60 to Rs 1220.00, L&T rose by Rs 36.95 to Rs 2539.05, SBI was up by Rs 32.70 to Rs 1561.35, REL INFRA gained by Rs 849.60, ONGC was up by Rs 19.80 to Rs 999.15, Maruti Suzuki, Sterlite and M&M also were up by Rs 18.90, Rs 15.20 and Rs 13.20 rspectively.
But a few major stocks drifted lower on profit booking such as Infosys Tech declined by Rs 52.50 to end at Rs 1532.50 followed by Ranbaxy by 38.15 to Rs 340.95, HDFC Bank by Rs 34.65 to Rs 2131.20, Tata Power by Rs 21.30 to Rs 948.60, Tata Steel by Rs 15.65 to Rs 459.35, Satyam Comp by Rs 14.55 to Rs 335, Grasim Ind by Rs 14.85 to Rs 1880.25, DLF Ltd and BHEL also were down by Rs 12.60 and Rs 12.75 respectively.