Sensex recovers 292 points

Mumbai: In see-saw trading this week, the BSE benchmark Sensex recovered by almost 292 points to settle at 16,453.76 on hectic short-coverings mainly in IT, refinery and realty counters.

The market was unpredictable throughout the week on lingering fears about the euro zone debt crisis. The 30 share Sensex dipped three out of five trading sessions on alternate bouts of buying and selling.

Besides negative global factors like euro debt problems and slow down in world economy, domestic developments such as sliding rupee against US dollar and likely weak second quarter performance by some key companies on high input costs, due to stubbornly high inflation, weighed on the market.

The market logged gains on hectic short-coverings on the expiry of September`s derivative contracts on Thursday.

Hopes of a bail out plan by European policy makers to rescue debt laden Greece and proposal to abolish or largely reduce the Securities Transaction Tax (STT) by the Centre on Monday to broaden the market involvement, helped the Sensex to gain about 473 points, its third biggest single-day gain this fiscal, on Tuesday.

Meanwhile, the German Parliament on late Thursday approved expanding the powers of the euro zone bailout fund to tackle the debt crisis. But the move failed to enthuse investors who said the first bailout didn`t make the situation for Greece any better.

The Bombay Stock Exchange 30-share barometer continued to veer in and out of positive terrain in a wide range between 16,756.08 and 15,801.01 before concluding at 16,453.76, a net rise of 291.70, or 1.80 per cent.

Last week, it had fallen by 771.74 points, or 4.56 percent.