Sensex manages some recovery arresting panic

The Nifty rose around 1 per cent  rebounding from its lowest level in a year as markets were seen as oversold.

Strong gains in European markets and buying at lower levels helped Indian markets recover from lower levels.

The rupee also rebounded to 66.07/dollar levels. Further improving the sentiment in domestic markets, a glimmer of hope has emerged on the Goods and Services Tax Bill.

The BSE Sensex, which witnessed its biggest point crash on Monday, started on a bright note, gaining  as much as 380 points in opening trade, while the broader Nifty advanced 116 points above 7,900. However, the market pared gains as the session progressed. At 9.44 a.m., Sensex was up 42 points to 25,784 while Nifty edged higher by 15 points to 7,824. But a sharp selloff in China shares later triggered another round of panic selling in equities.

At their day's lows, the Sensex slumped nearly 450 points to 25,298 while the Nifty hit 7,667 - their lowest levels in a year. But sharp gains in major European markets helped Sensex recover from lower levels. Institutional investors bought shares at lower levels, triggering a recovery in Indian markets.

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