Stock markets recouped in late afternoon trade after the government ruled out an armed conflict with Pakistan and the benchmark Sensex closed the day down by over 100 points, trimming early losses suffered on the US market fall overnight.
Stock exchanges were under severe pressure right from the beginning due to heavy battering in global markets on the news of a US committee officially acknowledging that the world’s biggest economy was in recession. The Sensex lost 325 points in early trade.
A rather dramatic recovery came in late afternoon trade when India sought to allay fears of an armed conflict with Pakistan, saying military action is not being considered.
The Sensex settled the day at 8,739.24, a fall of 100.63 points, or 1.14 per cent, from its previous close.Auto stocks were battered again with Tata Motors, Maruti Suzuki and Mahindra and Mahindra reporting sharp drop in their November sales. The auto sector index closed the day lower by 3.04 per cent, the biggest loss among all sectoral indices on Tuesday.
The broader 50-share Nifty of the National Stock Exchange also lost 25.10 points or 0.94 per cent to close at 2,657.80 from its last close.
The consumer durables index was the second worst performer by losing 2.61 per cent to 1,668.75 points.
