Sensex bounces back with 800 points' recovery

Mumbai, May 22: The BSE Sensex made a sharp bounce-back of 800 points after 1,100 points crash in the morning and was trading at 10,666, down by just 271 points, at 1338 hrs.

Earlier, the markets crashed this morning falling by more than 1,100 points to below 10,000 level on panic selling, induced by margin pressure.

The benchmark index of the Bombay Stock Exchange (BSE) crashed to a low of 9,827, dipping by 1,112 points, which led to suspension of trade.

The trading was suspended for one hour and resumed at 1300 hrs, leading to a bounce back by more than 500 points and the Sensex climbed back above the 10,000 level at around 1315 hrs.

The National Stock Exchange (NSE) S&P CNX Nifty index fell by 350 points to a low of 2,896. However, it came back sharply, too, to 3,161 points, but was still down by 85 points, at 1338 hrs.

Taking advantage of the situation, many mutual funds were also seen buying stocks at cheaper rates, an analyst said.

Life Insurance Corporation of India was also buying at this opportune moment.

UNI

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