Indian equity markets recovered from early losses to end flat on Tuesday, with the benchmark Sensex index closing down just 0.09% after falling as much as 500 points at the open. The recovery was attributed to short-covering by bears who had bet against the market as the Sensex lost over 1,500 points in the prior sessions due to the collapse of Lehman Brothers and Merrill Lynch acquisition. Analysts saw signs that investors who had sold stocks hoping for further declines covered their positions by repurchasing shares.

1. Markets recover to end flat on short covering
Tue-Sep 16, 2008
Mumbai / Indo-Asian News Service
Indian equities markets seemed to have weathered the financial tsunami on Tuesday, following the collapse
of Lehman Bros and buy out of Merrill Lynch, to end the day more or less flat.
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 on 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 Excha