Late recovery helps Sensex trim loss to 236 pts

 

Mumbai, Feb 19: Benchmark indices fell sharply on Monday, with the Sensex shedding 456 points intraday but the recovery in late trade helped it trim losses to 236 points in closing as PNB fraud case continued to dent investors’ sentiment.
In fact, there was too much volatility in later part of the session, which could be ahead of expiry of February futures & options contracts later this week.
Benchmark indices closed below their 100-day moving average, with the 30-share BSE Sensex losing 236.10 points to 33,774.66. The 50-share NSE Nifty closed below the 10,400 levels, falling 73.90 points to 10,378.40.
“Markets are seeing excessive volatility at present, citing local issues and the upcoming derivatives expiry will further fuel the same,” Jayant Manglik, President, Religare Broking said.
He advises keeping stock specific trading approach and maintaining strict risk management rules to avoid unmanageable losses.
The fall in broader markets was higher than benchmark indices as the Nifty Midcap and BSE Smallcap indices fell 1 percent each. About three shares declined for every share rising on the BSE.
All sectoral indices also closed in the red, but were off day’s low. PSU Bank index trimmed losses to 2.5 percent from 6.5 percent due to recovery in SBI that ended down 0.75 percent.
Punjab National Bank lost another 8 percent, taking total four consecutive days’ losses to 28 percent after it detected transaction fraud worth Rs 11,400 crore in a Mumbai branch on last Wednesday. Investors lost nearly Rs 11,000 crore wealth in four straight sessions.