Bulls roar back after 490 pts intra-day fall

Mumbai, Apr 28: Even after a massive slide of 490 points in the morning trade, the BSE Sensex bravely recovered its losses to close in the green at 11,851.93, that too with a gain of 17 points from yesterday's close.

Stock markets slumped this morning after market watch dog SEBI last evening banned 24 operators including Karvy Stock Broking and India Bulls from stock market operations and 12 depository participants (DPs) from opening fresh demat accounts.

The Bombay Stock Exchange (BSE) Sensitive Index (Sensex) swung 533 points intra-day, from a low of 11,344.61 in the morning to 11,877.32 points towards the close, in one of the sharpest intra-day recoveries in BSE's histroy.

The National Stock Exchange (NSE) S&P CNX Nifty index, too, bounced back at 3.508.35, after dipping 166 points to a low of 3,342 in the morning, and closed with a marginal gain of 0.25 point as compared to the last close of 3,508.10.

Nifty also swung 174.80 points from day's low of 3,342 to day's high of 3,517.

Markets recovered as good fourth quarter results, along with SEBI's clarifications kept yesterday's order in abeyance with respect to India Bulls, subject to verification of clients and also allowed tainted brokers to trade in their clients' accounts.

India Bulls' counter saw huge selling after yesterday's action by SEBI. The scrip dipped to a low of Rs 248.80 this afternoon with a loss of 19.99 per cent or Rs 62.15 per share, but bounced back after SEBI issued clarification and touched a high of Rs 298. India Bulls finally closed 9.15 per cent lower at Rs 282.50, with loss of Rs 28.45.

Index heavyweight Reliance Industries led the recovery in the market with a gain of 1.13 per cent to Rs 1,007.80, while Bharti Tele was also up by 0.97 per cent to Rs 405.85 after announcing positve results for the last financial year.

The blue chips were majorly hit since morning, and most of them traded in red till afternoon, but SEBI's repeated clarifications boosted sentiments leading to recovery in several Sensex stocks.

The top losers on the Sensex were - Cipla, Satyam Computers, Hindalco, State Bank of India, Wipro, Reliance Energy, Tata Power, Tata Motors, Tata Steel and ONGC.

Blue chips in the green on the Sensex were - NTPC, Hero Honda, Maruti, ACC, ICICI Bank, TCS, Hindustan Lever, Reliance, Bharti Tele and Bajaj Auto.

Earlier, the benchmark index of the Bombay Stock Exchange (BSE) opened 137 points lower at 11,698, as compared to the last close of 11,835 on the back of SEBI's order banning brokers.

Encouraging fourth quarter results from Bharti Tele, Bank of Baroda, Hindustan Lever and Hindustan Zinc were having a soothing impact on the markets, currently having a negative outlook due to SEBI action.

The softening of crude oil prices to USD 70.69 per barrel in global markets, too, was lifting investors' sentiments.

The top losers on the Sensex today were led by Cipla, down by 2.67 per cent to Rs 253.45; Satyam Computer lost 2.28 per cent to Rs 749.35; Hindalco lost 1.93 per cent to Rs 213.15; SBI closed 1.37 per cent down at Rs 882.35; Wipro closed 1.26 per cent down at Rs 537.25; Reliance Energy closed 1.12 per cent lower at Rs 609.10 and Tata Power closed 0.94 per cent down at Rs 546.55.

Besides, Tata Motors closed 0.83 per cent down at Rs 929.05; Tata Steel closed 0.73 per cent down at Rs 634.40 and ONGC closed 0.69 per cent down at Rs 1,294.65.

The recovery in the market was led by Reliance and Bharti's smart gains, after sound results.

Other Sensex gainers were - NTPC, up by 4.87 per cent to Rs 135.75; Hero Honda closed 3.29 per cent up at Rs 850; Maruti closed up by 2.40 per cent at Rs 919.65; ACC closed 1.94 per cent up at Rs 951.95; ICICI Bank closed 1.84 per cent at Rs 577.05; TCS closed 1.55 per cent up at Rs 1,982.10; Reliance Industries closed 1.13 per cent up at Rs 1,007.80; Bharti Tele closed 0.97 per cent up at Rs 405.85 and Bajaj Auto closed 0.40 per cent up at Rs 2,941.35.

The market breadth was negative with 1,440 scrips declining as against 1,018 scrips advancing, out of 2,511 scrips traded.

In the narrow market of Sensex-30 scrips, too, the market breadth remained negative with 18 scrips declining as against 12 advancing.

Both the stock exchanges (BSE and NSE) will conduct special live trading session tomorrow from 1030 hrs to 1330 hrs from Chennai, to test the readiness and upgrade the backup site.

UNI