)
The Indian market fell for a fifth session on weak global markets but recovered from the day’s lows on anticipation of a favourable announcement from the US Federal Reserve.
The benchmark Sensex ended down 71.31 points, or 0.27 per cent to 26,710.13, a level last seen two months ago. The Nifty closed at 8,029.8, down 37.8 points, or 0.47 per cent. On a day marred by intense volatility, as oil prices continued to fall, the Sensex managed to recover 240 points from 26,469.42.
Brokers said Life Insurance Corporation (LIC) bought shares on Wednesday, taking advantage of a 2,000-point fall in the Sensex from its highs, helping the market stage a recovery.
Asian markets ended mixed, while most European markets had opened weak due to a decline in stocks with high Russian exposure.
Investors in most markets — especially emerging markets — remained cautious ahead of the end of the two-day rate setting meet of the US Fed’s Open Market Committee. Further market direction will be guided by Fed’s signal on rate increases. Experts said any indication of early interest rate increases would spook emerging markets.
The India VIX index, a fear index, rose nearly four per cent on Wednesday to 16.92, signaling more volatility ahead.
Foreign investors sold shares worth Rs 1,636 crore on Wednesday, extending their six-day selling tally to nearly Rs 5,000 crore. Domestic institutional investors, on the other hand, emerged strong buyers and net-bought shares worth Rs 1,423.83 crore.
Metal, banking and oil stocks, which had taken a beating in the past few sessions, saw some value buying. Safe-haven bets such as pharma and consumer goods fell.
