Sensex pares losses; TCS, Wipro, Infy down 15% in 7 days

The market was still trading more than 200 points lower though it showed some recovery after panic selling. Technology stocks continued to be discarded. TCS, Wipro and Infosys were down 15% in last seven days.

Every market across globe was eyeing Federal Open Market Committee (FOMC) meet to be held in the US today. Global research firm UBS said FOMC would avoid giving market any hint of a QE3. "Fed will acknowledge that conditions are less stimulative," UBS said. Another global research firm HSBC expects the FOMC to hold policy steady.

The 30-share BSE Sensex was down 239 points at 16,751 and the 50-share NSE Nifty was trading 72 points lower at 5046. About 197 shares advanced against 1094 shares declined on the National Stock Exchange.

At 10:42 hours IST: Negative bias overpowers mood; Sensex shaky in seesaw trade

The market was extremely volatile with a negative bias after showing more than 300 points recovery from day's low. Investors as well as traders were covering their shorts.

The 30-share BSE Sensex was trading at 16,726, down 264 points and the 50-share NSE Nifty dropped 78 points to 5,039.

TCS, Reliance Power, Reliance Infrastructure, Sun Pharma, Infosys, Wipro and Hindalco were top losers among largecaps, falling 3-4.5%.

About 40 shares out of 50 on the Nifty were in the red. However, some fresh longs were seen in ONGC, Ambuja Cements and ACC, which were up 0.8-2.3%. M&M, Bajaj Auto, Kotak Mahindra Bank and Maruti gained on the back of short covering.

On the global front, European futures like DAX, CAC and FTSE were down 5-9%.

At 10:26 hours IST: Short-selling arrests Sensex's fall, Nifty holds 5K

Indian investors continue to short cover their positions which helped Nifty to hold the 5000 mark and BSE benchmark Sensex to further pare its losses. The 30-share BSE Sensex was trading at 16738, down 250 points and the 50-share NSE Nifty was trading at 5,044, down 74 points. Selling continued in sectors like technology, telecom, capital goods, metal and power companies..

Global markets were eyeing Federal Open Market Committee (FOMC) meet to be held in the US today.

The advance:decline ratio recovered to 1:7 from 1:15 in early trade.

At 10:04 hours IST: Sensex recovers over 300 pts; Taiwan turns green

Indian equity benchmarks were showing some semblance of a recovery after the initial crash - the Sensex recouped about 300 points from intra-day low. Recovery was seen in Asian markets too. China's Shanghai, which was down 2.5% at one point, pared losses to trade down only 1%.  Taiwan gained 0.5% after dropping 4.5% in the morning trade.

The 30-share BSE Sensex was trading down 260 points at 16,730 and the 50-share NSE Nifty was trading 78 points at 5,040. The Indian rupee depreciated 0.77% to 45.31 per dollar.

Brent crude got back above USD 100 a barrel; it was down 2.4% to USD 101 a barrel. Crude fell 4% to USD 78 a barrel on the NYMEX. However, gold - safe commodity - rallied 2.7% to USD 1766 an ounce.

At 9:46 hours IST: Nifty reclaims 5K; IT remains worst hit amid sell-off

BSE benchmark Sensex continues to be under extreme pressure just as the rest of the world. Asian Indices continued their fall for the second day as sentiments post US downgrade remained fragile. But the Nifty managed to get back above the 5000-mark.

Analysing the global phenomenon, Robert Parker of Credit Suisse told CNBC-TV18 that "the US rating downgrade was discounted by global markets. What we are currently seeing is more of investor fear, which is propelled by credibility of sovereign debt.