Sensex ends 111 points down despite great recovery attempt

A handsome recovery from lowest point of the day could not save the market from registering its fourth consecutive session of loss on Monday. While short covering and a rebound in global markets drove the recovery in the last couple of hours of trade, a steep cut in oil & gas, capital goods, metals, FMCG, power and auto stocks forced a negative closure. A drastic fall in international commodity prices too weighed on the market today.

The 30-share BSE Sensex fell 110.96 points or 0.69%, to close at 16051.10 after seeing recovery of 250 points from day's low of 15,801.01. The 50-share NSE Nifty hit an intra-day low of 4,758.85, before closing at 4,835.40, down 32.35 points or 0.66%.

Billionaire investor Rakesh Jhunjhunwala believes the market should not drop more than 10% from current levels. "The near-term expectations are that it [Nifty] will not break the last bottom, which was around 4700-4750," he reiterated.

According to him, two things might work in favour of Indian market. "We have had a good monsoon and the commodity prices have come down dramatically," he said adding, "