The two niche indices, BSE Sensex and S&P CNX Nifty, saw divergent trend with the later posting gains helped by spurt in non-Sensex constituents viz. Reliance Petroleum and Cairn India. But a key reason for the divergence of the two indices was a sharp fall in L&T. L&T has a much higher weightage of 7.18% in Sensex compared to the stock's 3.16% weightage in Nifty.
The market staged a solid rebound in second half after suffering a sharp fall earlier in the day as Hong Kong's Hang Seng index moved into green from red. The market had tumbled earlier in the day after a surprisingly weak US employment data on Friday, 7 March 2008, heightened fears of a US recession.
Reliance Industries staged a strong comeback. Heavyweights from the capital goods sector regained some ground after early sell-off. The market breadth, however, remained weak. 16 shares from the 30-member Sensex pack advanced.
The next trigger for the market would come from the figures of advance tax payment by corporates for the fourth installment, which falls due on 15 March 2008.
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