MUMBAI (Thomson Financial) - Indian indices recovered after the markets re-opened at 1055 IST (0525 GMT), an hour after the trade was suspended after India's share market barometer, the Bombay Stock Exchange's 30-scrip Sensex, shed 11.5 pct within minutes of the opening bell.
Local sentiment was battered as shares across Asia tumbled on heightened fears that a US recession could spell doom for the region's exports, but investors were soothed after finance minister P. Chidambaram called for calm. The 'markets will make a new beginning at 10:55 AM,' he said.
At 1058 IST (0528 GMT), the Sensex had recovered to trade 611.17 points or 3.47 pct lower at 16,994.18.
'The worst may be over now; the market has to recover from the lows that it has hit. This sudden panic is rationally unwarranted as the fundamentals of the Indian economy cannot change overnight,' said VVLN Sastry, country head of Firstcall India Equity Advisors. http://www.forbes.com/markets/feeds/afx/2008/01/22/afx4555531.html Well some good news after the second day of Asian bloodbath. Japanese Markets still down considerably, as well as Indonesian, Australian and others.
...in related news, India’s finance minister P. Chidambaram has boarded a plane for the U.S. where he will call for calm on the New York Stock Exchange prior to the opening bell.