Sensex recovers from below 8,000, rupee near record low of 50 to USD
The Sensex hit a rock bottom of 7,697.39 and the Nifty hit a rock bottom of 2,252.75 before staging a remarkable recovery. This recovery was I guess due to some opportunistic buying, some short covering and investments by insurance companies.
At the end of trade, Sensex closed 191.51 points down (2.20%) at 8,509.56 and Nifty closed 59.80 points down (2.31%) at 2,524.20.
Asian markets closed lower (Hang Seng was down 12.70%, Nikkei was down 6.36% ) and Europe is trading lower (FTSE down 4.13%, DAX down 3.52%).
The rupee hit an all time low of 50.275 against the USD but recovered after RBI intervention.
SBI posted a 40% increase in profits in Q2 but the market slammed the stock down by 15.66% to Rs. 1,050.00. The bank has set Rs. 610cr as provisions for bad loans, a significant increase as compared to provisions in the previous year.
Unitech, which dropped significantly in the last trading session, closed at Rs. 42.65, an increase of 37.58%. The company is apparently filing a complaint with SEBI and has said that the fall in the last trading session was due to some malicious rumours by speculators.
But one thing is for sure, wait for a few more days and I think we will see the bottom of the market. If you have a 2-3 yr horizon, just start investing now.
October 27th, 2008 at 1:30 pm
Now is the right time to enter the markets. If someone invests money now, it would show good returns in the next 2 years. Do not wait for exact bottom, no one can ever time it. We are quite close to the bottom now.