Mumbai, Nov 9 (IANS) A barometer index of the Indian equity markets recovered after an initial fall of more than 600 points, after the central government assured investors that the reforms process will continue.
The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) closed the day’s trade 144 points or 0.55 percent down on Monday.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also receded in the day’s trade. It was lower by 39.10 points or 0.49 percent at 7,915.20 points.
Investor sentiments were subdued, a day after the BJP-led coalition suffered a rout in the Bihar assembly polls. The BJP is considered to be more business and reform friendly.
The Bihar election outcome was widely seen as a popularity test for the central government.
Both the indices of the Indian equities markets, which opened in the negative territory, plunged by more than two percent each in the initial trade session.
Notwithstanding the slide, positive comments from the Finance Minister Arun Jaitley over the continuation of the reforms process restored investors’ confidence.
The finance minister spoke to the media in New Delhi and said that the reforms process such as the passage of the goods and services tax (GST) will not be hindered by the Bihar poll defeat.
Furthermore, bargain hunting and recent reforms measures announced for the power and banking sector too restored investors’ interest.
The S&P BSE Sensex, which opened at 25,809 points, closed at 26,121.40 points, down 143.84 points or 0.55 percent from the previous day’s close at 26,265.24 points.
The Sensex touched a high of 26,193.17 points and a low of 25,656.90 points during the intra-day trade.