Date:05/11/2008 URL: http://www.thehindu.com/2008/11/05/stories/2008110552151700.htm

Front Page

Sensex recovers from early lows

MUMBAI: Despite opening weak on Tuesday on profit taking, stock markets surged late afternoon and finished in the green after Finance Minister P. Chidambaram announced that State-owned banks had agreed to cut lending rates.

The Bombay Stock Exchange 30-share benchmark sensitive index (Sensex) closed at 10631.12, up 293.44 points or 2.84 per cent against its previous close of 10337.68. With investors resorting to booking profits on gains made during the previous two successive trading sessions, the Sensex opened some 30 points down and soon dipped to hit an intra-day low of 10116.22.

But it began to surge mid-afternoon after the Finance Minister’s announcement that banks would cut lending rates following his meeting with the chiefs of State-owned banks.

The broader-based 50 share S&P CNX Nifty of the National Stock Exchange also opened weak but then recovered to close at 3142.10, up 98.25 points against 3043.85.

The BSE midcap index closed at 3446.22, up 90.68 points or 2.70 per cent. The smallcap index finished at 4035.11 points, up 108.01 points.

Eleven of the 13 sectoral indices finished with gains. — Indo-Asian News Service