The Nifty rebounded 266 points from the day’s low to close up 0.9% at 16,170.15.
Markets could correct 5-8% if selling continues apace, say analysts; nearly half of Nifty shares fell due to FII selling
FIIs continued to be sellers, offloading shares worth a provisional Rs 1,265 crore even as DIIs purchased shares worth Rs 2149 crore.
Meanwhile, Asian markets in Hong Kong, Shanghai and Tokyo were trading in the green. Stock markets in the US had ended lower on Thursday.
Midcap and small-cap indices underperformed the frontline indices causing huge losses to retail investors who tend to invest in these counters.
Stock markets are not the perfect reflection of the economy, not always. They have their own universe, rules and barometers.
The 30-share BSE Sensex dived 866.65 points or 1.56 per cent to finish at 54,835.58. During the day, it tanked 1,115.48 points or 2 per cent to 54,586.75.
Amid high volatility, equity benchmark indexes Sensex and Nifty on Thursday erased most of the intraday gains and ended flat.
After surging over 200 points in early trade, the 30-share BSE benchmark turned volatile and was trading 27.41 points or 0.05 per cent lower at 57,184.21 in early deals.
The inflation demon is attacking economies around the world. Interest rates are likely to soar over the next few quarters.
Heavy selloffs dragged Sensex down to 56,009.07 points in the intra-day. This is the fifth consecutive session of fall in the Sensex. The benchmark Sensex had lost 1172.19 points or 2.01% on Monday.
"Sentiments in domestic markets continued to be negative on account of weak global cues, acceleration in WPI inflation and below expectation results from heavyweights," an expert said.
Stock markets could gap down Monday , taking cues from the SGX Nifty and derivatives which show huge shorts to have been formed .
Meanwhile, retail inflation soared to a 17-month high of 6.95 per cent in March, and remained above the Reserve Bank's upper tolerance level.
From April 18, the trading hours of these markets will be from 9 AM to 3.30 PM.