Mumbai, Oct 20 : The Bombay Stock Exchange (BSE) recovered more than four percent in early deals today after a sharp sell-off in the previous session.
At 12:15 p.m., the 30-share of BSE index was up by 4.51 percent at 10,425.53.
The BSE Sensex is seen opening higher today after a sharp sell-off plummeting to lowest close since mid-2006. However the recovery may not hold as fears of a global recession continue to haunt investors.
"This short term rally will not last long. The markets should be in a narrow range for some time, say for about six months, then only there can be any major rallies. So, I don't think, these short rallies....people should not shift and not feel that the worst is over and we can start buying. But anybody who wants to invest for long term for long term, this is the best opportunity," said Mohan, an investor.
The benchmark 30-share BSE index fell by 5.7 percent to 9,975.35 on Friday, its lowest close since June 2006. The index has fallen in each of the past four weeks, loosing more than half its value this year.
Foreign funds have sold a net 11.8 billion dollars of stocks so far in 2008, compared to record net buying of 17.4 billion dollars last year.
Most Asian stock markets rallied on Monday, with valuations growing more attractive, and after governments around the world rushed out further steps to help the private sector.
South Korea promised 130 billion dollars in state guarantees and capital injections and the Dutch government said it would prop up ING with around 10 billion euros.
Japan's Nikkei average was up 0.5 percent and MSCI's measure of other Asia-Pacific stocks had risen 1.9 percent.
U.S. stocks fell on Friday on weakness in manufacturing and financial stocks after bleak data on consumer confidence and construction.