BSE Sensex recover over 300 points on European cues

NEW DELHI: The BSE Sensex has pared morning losses considerably on the back of positive cues from the European markets, and selective buying in index heavyweights. The BSE Sensex recovered over 300 points from the day's low and is now down 210 points at 17,091.

At 02:40 IST, the 50-share Nifty index too pared morning losses and is now trading 62 points lower at 5,148.

Most European shares had begun the day in negative territory with London and Frankfurt both down 1 per cent in opening trade.

However, the FTSE 100 climbed 18.02, or 0.3 per cent, to 5,265.01 at 8.32am, the first gains in seven days while German stocks also rose, with the benchmark DAX Index climbing 0.5 per cent to 6,266.33. The Dublin market was up by1.3 per cent to 2,537.69. The benchmark Stoxx Europe 600 Index rallied 0.5 per cent to 240.04 at 8:25 am, recouping losses of as much as 1.4 per cent.

"Indian equities provide a reasonable valuation vis-a-vis the alternatives which are available in the precious metals and real estate", says Nilesh Shah, President-Corporate Banking, Axis Bank in an interview with ET Now. "So net based on the experience, probably we will not see a panic bottom but just a neutral bottom getting formed over next couple of months", adds Nilesh.