Indices get short-covering push

STOCK REPORT

Short-covering ahead of October derivatives contract expiry on Wednesday as well as value buying after the market slide on Friday helped key share indices to recoup most of their losses and end just 2 per cent down on Monday, against a 12-13 per cent fall earlier in the session.

Share indices had opened 2 per cent down on weakness in overseas markets, but momentarily stepped into the positive territory before being pulled down again with nervous investors selling shares across the board.

Global advisories have been warning of more pain in the market before a recovery can be expected, as financial markets and economies all over the world continue to show signs of weakening further.

“In terms of price correction at least, this has been the worst bear phase in Indian stock market history. The Nifty bottom is not in sight, but we hazard a guess of 2,350-2,400 as support levels,” India Infoline said in a note to its clients.

The Bombay Stock Exchange’s Sensex ended at 8,509.56, down 191.51 points or 2.2 per cent from Friday, after moving between a low of 7,697.39 and a high of 8,739.48 intraday.

The National Stock Exchange’s Nifty ended at 2,524.20, down 59.80 points or 2.3 per cent. It moved between 2,252.75 and 2,585.30 during the session.

On Monday the lowest closing levels for the two indices in three years. October futures and options contracts expire on Wednesday.

The CNX Mid-Cap Index ended 4.4 per cent down and the S&P CNX 500 Index shed 3 per cent.

The turnover on both exchanges combined was Rs 13,012 crore as against Rs 15,433 crore on Friday.