Date:30/10/2008 URL: http://www.thehindu.com/2008/10/30/stories/2008103056621900.htm

Business

Sensex sheds early gains

MUMBAI: Amid high volatility on the last day of derivatives contract, the Bombay Stock Exchange benchmark Sensex could not sustain an early rally on heavy profit-booking, but managed to end in the positive terrain, up 36 points on Wednesday.

Besides China and Korea, most Asian stock markets rose on Wednesday after a dazzling rally on Wall Street on Tuesday as investors awaited possible interest rate cuts from central banks in the U.S. and Japan.

Brokers expected that the market would gain further momentum looking at sharp rally in New York, but strong rebound on the Samvat 2065 on Tuesday proved to be short-lived. However, the Bombay Stock Exchange 30-share barometer resumed sharply higher by nearly 290 points but remained unpredictable throughout the day and fell below 8900-level before recovering to some extent on domestic funds buying to settle the day at 9044.51, a rise of 36.43 points over previous close. Similarly, the 50-share benchmark Nifty index of the National Stock Exchange also ended slightly better by 12.45 points to 2697.05 from its last close.

According market players, the market is still reeling under global credit crisis and as a result foreign funds are pulling out heavily. — PTI