Alex Mathew, head - research centre, Geojit Financial Services, said that the stock market, on Tuesday (Sep 30), recovered a lot from its lows on reports from the Finance Ministry that state run banking institutions do not have risky exposure, and the fundamentals of Indian economic system are really strong. 

Mr. Mathew said, “It is very interesting to note that US Chicago Board Options Exchange’s volatility Index has increased by 39% to 48.4% and finally closed at 46.7% yesterday.”

After opening negatively at 12,178.17, down 417.57 points, the 30-share index BSE Sensex fell further to a two-year low of 12,153 on all-round selling by funds following refusal of the $700-billion plan by US House of Representatives.

In contrast, the National Stock Exchange (NSE) index Nifty lost 135 points at 3715 with all the heavy-weight stocks trading in negative zone.

Indian stock markets opened on a dull note today (Sep 26), and continued to slip further because of massive selling by funds, sparked by failing trends in other Asian markets.

For the week ended September 13, the wholesale price index (WPI)-based inflation remained unchanged at 12.14%. However, inflationary figures during the same period of the last year were significantly lower at 3.51%.

Indian equities, today (Sep 25), opened positively and soon slipped into the negative zone. After trading negatively for few minutes, the index bounced back into positive and again fell into the negative to trade on a flat note. 

The stock index is presently trading in a volatile manner prior to September series F&O expiry. Moreover, the question regarding the fate of the US financial sector bailout plan will carry on disturbing the market reaction.

The 30-share index, BSE Sensex, today (Sep 24), opened with a gain of 60.23 points at 13,630.54. Real estate, banking and power segments edged higher during the early trades.

In the previous day session, the Sensex closed 424.65 points down at 13,570.31, while the NSE Nifty dropped 96.15 points at 4,126.90.