Sharp Recovery After a Huge Fall

Firm global cues helped domestic bourses recover some of the Monday's sharp losses. The BSE 30-share Sensex rose 250.34 points or 1.69%, off close to 100 points from the day's high and up close to 295 points from the day's low. The Sensex closed above psychological 15,000 mark. It had fallen below this mark on Monday in a broad based sell off. IT stocks fell. Buying was witnessed in capital goods, realty and metal stocks.

The market was volatile. The market after opening lower turned positive for a brief period before reversing gains tracking weak Asia. Market surged to fresh day's high in mid-morning trade. Market extended gains later as Asian stocks reversed losses and European stocks rose. Market pared gains in mid-afternoon trade.

Global sell-off after a disappointing US consumer sentiment report reigniting concerns about the global economic recovery triggered a sharp sell-off on the domestic bourses on Monday, 17 August 2009. The BSE 30-share Sensex fell 626.71 points or 4.07% at 14,784.92 on Monday.

There is no fresh proposal for a farm debt waiver and economic growth is expected to be 6 percent-plus in the current financial year ending March 2010, Finance Minister Pranab Mukherjee said on Tuesday.

Meanwhile, India's July exports have fallen 26 % from a year earlier, Trade Secretary Rahul Khullar said on Tuesday. Government is not condsidering ban on maize, soymeal exports as of now he said.

 

The monsoon situation remains grim with the country heading into the worst drought year over the last two decades. Monsoon was 56% below normal in week to 12 August 2009 and was 72% below normal in the soyabean growing central region in past one week, India Meteorological Department (IMD) said on 13 August 2009. Monsoon rains were 29% below normal during the period from 1 June 2009 to 12 August 2009. However, India's weather office has ruled out an early withdrawal for this year's monsoon which has still one and half months to complete its full journey. The progress of monsoon is closely watched as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

 

Prime Minister Manmohan Singh said on Tuesday that the country was facing a drought threat India reportedly aims to raise planting of winter-sown crops and improve irrigation to make up for the damage to farms and to try to counter rising food prices after poor monsoon rains hurt crops such as rice and sugarcane..

 

India's growth projection could be trimmed due to a poor monsoon, but the country has adequate food stocks to counter inflationary pressures, the plan panel Deputy Chairman Montek Singh Ahluwalia said on Tuesday.

 

The BSE 30-share Sensex rose 250.34 points or 1.69% at 15,035.26 . The Sensex rose 349.59 points at the day's high of 15,134.51 in afternoon trade. At the day's low of 14,740.26, the Sensex fell 44.66 points in early trade.

The S&P CNX Nifty was up 71 points or 1.62% to 4,458.90. Nifty August 2009 futures were at 4455.10 at a discount of 3.80 points as compared to the spot closing of 4458.90. Turnover in NSE's futures & options (F&O) segment rose to Rs 73,655.74 crore from Rs 70,983.18 crore on Monday, 17 August 2009.

BSE clocked a turnover of Rs 5166 crore higher than Rs 4,977.50 crore on Monday, 17 August 2009.