Markets in recovery mode after 491 pts' fall in morning

Mumbai, Apr 28: The 30-share BSE Sensex somewhat recovered a major morning dip and was trading at 11,715 at 1350 hrs, even as it went down by 491 points earlier to a sharp low of 11,344 points after SEBI's crack down on operators and depository participants (DP) involved in the IPO scam.

Index heavyweight Reliance Industries was leading market recovery with a gain of 0.30 per cent to Rs 999.50, while Bharti Tele was also up by 1.02 per cent to Rs 406.05 after announcing positve fourth quarter results.

The blue chips were majorly hit since morning, and most of them traded in red even in the afternoon.

The top losers on the Sensex were - Cipla, Hindalco, Tata Steel, Grasim Industries, Hindustan Lever, Wipro, Tata Power, State Bank of India, Tata Motors and Reliance Energy.

Few blue chips in the green on the Sensex were - NTPC, ACC, Bharti Tele, Maruti and Reliance Industries.

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.

Yesterday, SEBI banned 24 operators including Karvy Stock Broking and India Bulls from stock market operations and 12 DPs from opening fresh demat accounts.

However, this morning, SEBI, in a clarification issued, allowed tainted brokers to trade in their retail client's account.

SEBI said ''clients should switch over from Karvy and Pratik as depository participants (DP) within 15 days.'' The National Stock Exchange (NSE) S&P CNX Nifty index also opened flat at 3,507.45 but dipped 166 points to a low of 3,342 point in the opening move, before bouncing back, and traded at 3,474, down by 33 points at 1346 hrs.

India Bulls' counter was seeing huge selling after yesterday's action by SEBI, as 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.

Encouragng 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.

UNI