Sensex falls by more than 100 points, but recovers from post-Bihar slump
Investors are expected to be cautious over the Diwali week.
The BSE Sensex fell below 26,000 again on Tuesday, a day after it crashed by more than 600 points following the Bharatiya Janata Party’s loss in the Bihar elections. At 10.32 am, the Sensex touched 25,968.46, while the 50-share Nifty was at 7,859.35. Both indices opened in the red on Tuesday morning, with the Sensex dropping by 127 points and the Nifty by 38 points. Investors said the lower trading reflected weak global cues, the Financial Express reported.
The rupee gained slightly, by 0.09 points to 66.36 against the dollar at 10.32 am. The investors are expected to be cautious during the long close for Diwali this week, Livemint reported. While the major slump on Monday reflected pessimism among investors that the BJP’s loss would mean a slowdown in economic reforms, the markets recovered by the end of the day. The Sensex settled 144 points down at 26,121, while the Nifty ended 29.10 down at 7,915.20. Tuesday’s figures indicate that the crash might have been a knee-jerk reaction.