The Indian stock markets recovered from early losses on Tuesday after opening very weak following the financial crisis in the US. The benchmark Sensex index ended the day down just 0.09% after falling as much as 500 points early on. Analysts said the recovery was likely due to short-covering as bears who had bet on falling prices covered their positions by buying stocks back. While the markets opened significantly lower, they stabilized over the course of the day, showing signs of short-term volatility rather than a sustained downturn.

1. Tue, Sep 16 05:44 PM
Mumbai, Sep 16 (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