Mumbai: Indian market came back from the brink on global feel-good factors and improving domestic macros as it covered up losses from Black Monday, thus winding up a turbulent and intensely volatile week.
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The massive sell-off dealt a severe blow to both the key indices -- the BSE Sensex and NSE Nifty lost 973.69 points and 298 points to close at 26,392.38 and 8,001.95, respectively, extending their losses for the third successive week.
In the bloodbath, the benchmark Sensex crashed over 1,625 points while 50-share NSE Nifty plunged 490.95 points -- their biggest single-day fall -- as trading started the week on a nervous footing after a Chinese stock meltdown sent shockwaves through financial markets of the world.
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The ripple effect spread to other emerging market currencies and commodities as well.
Although the market took a breather by bouncing back a day after the big Monday blow, it fell once again on Wednesday.
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Gains in the last two sessions of the week following a global recovery saved the Indian market from further damage.
The mood got a sudden lift after a sharp rebound in US market after several volatile days as upbeat macro data added to optimism over the facet for global economic growth as well as strong rebound in Chinese equities after the central bank cut its main interest rates to tide over liquidity crisis.
Positive comments and assurance from the officials that the government in touch with the RBI to take necessary steps to deal with the crisis and volatile currency market also helped to calm market nerves to some extent.
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Sentiment got a boost after the government said it's considering reconvening a special session of Parliament for passage of the stalled GST Bill and key reform bills.
The rebound also was partially attributed to falling expectations of an imminent interest rate hike following dovish comments from the New York Fed president that possibility of September rate increase from the US central bank seemed "less compelling" in the midst of global economic uncertainty.
Additionally, bouts of value-buying in several blue-chips and covering-up of positions by speculators alongside continued inflows from domestic institutional investors kept the momentum going, while Foreign institutions largely stayed away. (MORE) PTI EDM SBT ABD MKJ
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The Sensex, which resumed with a gap-down at 26,730.40 and plunged to a fresh multi-year low of 25,298.42 ended at 26,392.38, a huge loss of 973.69 points, or 3.56 per cent.
Similarly, the broader CNX 50-share Nifty index also fell sharply by a massive 298 points, or 3.59 per cent, to end at 8,001.95 after hitting a low of 7,667.25.
The bellwether 30-share Sensex has now lost 1,844.01 points, or 6.53 per cent, and the NSE-Nifty 562.65 points, or 7.03 per cent, for the three consecutive weeks.
Foreign portfolio investors (FPIs) have been cautious since the beginning of August and pulled out a net Rs 15,691 crore (USD 2.36 billion) from the Indian markets (debt and equities), as per the latest data.
On the global front, US markets ended higher after several volatile days against the backdrop of robust macro data, easing fears about China's impact on the overall economy. A similar trend was seen in European stocks too, outperforming its peers.
However, Chinese stocks -- the epicentre of the turmoil -- closed down 7.8 per cent after an exceptionally volatile week.
Higher oil prices also contributed to the positive mood in Asia after crude spiked back above USD 50 a barrel for the first time in almost three weeks from Monday's six-year low of USD 42.23.
Among the S&P BSE sectoral indices, Consumer Goods dropped by 6.09 percent, followed by Bankex 4.76 percent, Healthcare 4.31 percent, Auto 4.21 percent, Power 4.03 percent, IT 3.78 percent, Teck 3.29 percent, Oil&Gas 3.23 percent, Consumer Durables 2.79 percent, FMCG 2.39 percent, Realty 1.75 and Power 0.18 percent.
However, Metal rose by 0.02 per cent.
The BSE Mid-Cap Index dropped 457.24 points or 4.08 percent to settle at 10,759.41. The BSE Small-Cap index fell by 617.62 points or 5.32 per cent to settle at 10,992.82.
Among the 30-share sensex pack, 27 stocks declined while rest of them gained.
Major losers were Maruti (7.90 percent), Larsen (7.08 percent), GAIL (7.04 percent), SBIN (6.79 percent), M&M (6.75 percent), HeroMotcop (6.21 percent), Bhel (5.76 percent), Bajaj Auto (5.74 percent), SunPharma (5.68 percent), Cipla (5.39 percent) Hindalco (5.00 percent), ONGC (4.84 percent) Icici Bank (4.24 percent), TCS (3.90 percent), Reliance (3.98 percent) and Tata Steel (3.69 percent).
However, Coal India rose by 2.49 percent followed by Tata Motor 2.30 percent and Vedl by 1.69 percent.
Total turnover at BSE rose to Rs 18,931.54 crs, while NSE rose by 1,20,565.45 crs from the last weekend's level of Rs 16,212.63 crs and Rs 90,575.22 crs, respectively.
