MUMBAI, MAY 23: Stock markets continued their roller-coaster ride with the benchmark Bombay Stock Exchange Sensex plummeting below the 3,900 level before staging a late recovery. After a weak spell, pivotals led by IT stocks and telecom bounced back to wipe off earlier losses in volatile trading.At the National Stock Exchange (NSE), the 50-share Nifty index ended lower by 8.60 points to 1224.40 from the previous close of 1233.00. Being the last day of weekly settlement at the NSE, players were busy in squaring up of their positions, which resulted into a marginal fall in the index level.Brokers said that IT stocks led by Infosys Technologies, Zee Telefilm, Satyam Computer, Software Solutions and the economy stock Tisco mainly pulled up the Sensex by nearly 100 points from the day's low. Domestic institutional investors like UTI, LIC and GIC and some foreign funds reportedly made considerable purchases in IT counters in the late afternoon trade, resulting into a reversal in the trend.``Short covering and local fund buying at the fag end of the session helped the markets to close in a positive territory on Tuesday,'' said an NSE dealer. After three consecutive declines in the benchmark indices, today's late rally came from some hectic buying in infotech stocks. According to market players, with the Sensex closing at the day's high, Wednesday's opening is likely to be with an upward gap, But after recent bear hammering in the market, brokers are keeping their fingers crossed.Although a number of players and fund managers agree that at current valuations, most of the fundamentally strong companies look attractive, but the reality points otherwise. ``Everybody says that the valuations are attractive, but nobody has the courage to buy at the current levels,'' said a dealer with a broking house. According to the dealer, the dipping market over the last two months has shaken the confidence of even the most optimist market player.For dealers, even a rally upto 4200-4300 level looks good from the current level. ``In case this happens over the next few days, at least some confidence would be restored among the investors,'' said a market analyst. Marketmen are closely watching the movement of Nasdaq on Tuesday. Nasdaq at one stage on Monday dropped as low as 3,172.65, a new low for the year before rallying back in the final hour.
