Sensex recovers after crash

The Bombay Stock Exchange benchmark Sensex recouped from recent lows and opened over 900 points on Wednesday.

It recovered on heavy purchases by funds triggered by a surprise interest rate cut of 75 basis points announced by the US Federal Reserve on Tuesday.

The 30-share index, Sensex, which tumbled 875 points Tuesday, gaining 946.66 points to 17,676.60 in the first five minutes of trade.

Similarly, the wide-based National Stock Exchange index, Nifty, rose by 377 points to 5,276.30 as heavy-weight stocks like Reliance Industries, Infosys Technology and Larsen and Toubro surged on heavy buying.

Trading sentiment firmed up following reports of a surge in other Asian stock markets.

Hong Kong share market bounced back in early trade, opening 7.4 per cent up following their biggest-ever one-day fall on Tuesday, after the US Federal Reserve announced a surprise rate cut.

The Federal Reserve on Tuesday unexpectedly lowered interest rates by 75 basis points to 3.5 per cent, the biggest cut in more than 23 years, in response to worldwide stock market turmoil.


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