Indian equities stage major recovery after early decline (Third Lead)

Mumbai, Nov 9 (IANS) The Indian equity markets remained deep in the red during most of the trading hours on Wednesday but finally recovered towards the fag-end to provisionally close lower by slightly more than a per cent.

Following global cues, as also domestic developments, key Indian indices had reacted adversely to the victory of Republican candidate Donald Trump in the US presidential election and the government’s decision the previous evening to demonetise Rs 500 and Rs 1,000 currency notes.

After crashing 1,688 points, or 6.12 per cent, in early trade on Wednesday, a key Indian equity index, the 30-share sensitive index (Sensex) of the BSE, regained a large part of the losses to provisionally close lower by around 338.61 points, or 1.23 per cent, at 27,252.53 points against the previous close of 27,591.14 points.

The 30-share Sensex opened as much as 1,339.76 points, or 4.86 per cent, lower on Wednesday at 26,251.38 points, against the previous close at 27,591.14 points. It then drifted 350 points further lower immediately thereafter. But gradually, a large part of the losses were recouped.

By the time Democratic Hillary Clinton admitted defeat and Trump gave his victory speech, the index had significantly risen from the lows following short-covering and bargain-hunting and was quoting at 27,207.92 points, down 383.22 points, or 1.39 per cent.

At the National Stock Exchange, the Nifty provisionally closed at 8,432 points, down 111.55 points, or 1.31 per cent.