'This early fall gave bears with short positions a chance to book profits as over Friday, Monday and early Tuesday there was a total fall of about 1,500 points,' said Jagannadham Thunuguntla, equity head of Delhi-based NEXGEN Capitals Ltd.

1. Markets recover to end flat on short covering
Mumbai News.Net
Tuesday 16th September, 2008 (IANS)
Indian equities markets Tuesday seemed to have weathered the financial tsunami
following the collapse of Lehman Bros. and buy out of Merrill Lynch Monday to end the
day more or less flat after opening very weak.
The recovery clearly showed signs of short covering, analysts said.
The 30-share benchmark sensitive index (Sensex) of the Bombay Stock Exchange (BSE)
ended the day at 13,518.80, down just 12.47 points or 0.09 percent from its previous
closing Monday at 13,531.27.
The Sensex had, however, opened with a fall of nearly 500 points.
'This early fall gave bears with short positions a chance to book profits as over Friday,
Monday and early Tuesday there was a total fall of about 1,500 points,' said
Jagannadham Thunuguntla, equity head of Delhi-based NEXGEN Capitals Ltd.
NEXGEN is the securities arm of the fourth largest share brokerage house in the country
the SMC Group.
The National Stock Exchange saw a similar trend. It opened very weak, down more than
125 points, but again began to recover on short covering by bears and some bottom
fishing.
After two short dips during the day, it finally recovered enough to end the day with a
marginal gain.
The broader based 50-share S&P Nifty of the NSE ended the day at 4,074.90, a marginal
gain of 2 points or 0.05 percent over its previous close Monday.
The BSE midcap ended at 5,217.25, down 71.34 points or 1.35 percent.
The BSE small cap index ended at 6,289.41, down 91.06 points or 1.43 percent.
'With good news expected out of the world's largest economy the US later today, bears
booked profits as the markets may start moving up again Wednesday,' Thunuguntla
said.

2. He was referring to the fact that the US central bank is expected to cut a key short-term
interest rate by 25 to 50 basis points from its current 2 percent.
'Given the current situation, they really have no choice but to inject liquidity even if it
means adding a bit to inflation,' he said.
The world's largest and second largest investment banks Goldman Sachs and Morgan
Stanley are also expected to report earnings Tuesday and Wednesday, respectively.
All this may push up markets Wednesday onwards which led to the short covering,
Thunuguntla said.
Sectorally, realty, consumer durables, health care and metal stocks were the biggest
losers.
Oil and gas, banks, public sector units and fast moving consumer goods stocks were in
the black.
State Bank of India (SBI), Sterlite Industries, Reliance Industries and HDFC Bank were
the biggest gainers.
SBI moved up Rs.96.60 or 6.49 percent to 1,585.50 from its previous close Monday of
1,488.90. Sterlite Industries gained Rs.12.40 or 2.66 percent to close at Rs.477.70 up
from Rs.465.30.
Reliance Industries moved up Rs.44.35 or 2.35 percent to finish at Rs.1,928.45 up from
Rs.1,884.10. HDFC Bank rose Rs.26.00 or 2.16 percent to close at Rs.1,230.05 up from
its previous close Monday of Rs.1,204.05.
The top losers were ICICI Bank, Jaiprakash Associates, Maruti Suzuki and Ranbaxy
Laboratories.
ICICI Bank lost Rs.36.55 or 5.82 percent to finish at Rs.591.35 down from Rs.627.90.
Jaiprakash lost Rs.7.50 or 5.09 percent to end at Rs.139.80 against its previous close
Monday of Rs.147.30.
Maruti Suzuki shed Rs.25.65 or 3.55 percent to close at Rs.697.75 down from Rs.723.40.
Ranbaxy Laboratories ended the day at Rs.405.90 down Rs.13.55 or 3.23 percent against
its previous close of Rs.419.45.
The market sentiment was negative with 1,752 shares declining, 886 advancing and 73
remaining unchanged.