Reversing the trend from multi-year lows, the benchmark Sensex rallied 1,325 points on Friday after a sharp plunge of 2,919 points witnessed the previous day. This is the sharpest single day recovery after the 30-pack index's worst one-day fall on Thursday in absolute terms. This is going by the five worst single-day falls, measured in terms of a decline of 1,000 points or more. The second worst fall of 1,942 points was observed on March 09, 2020. This was followed by a massacre on August 24, 2015 with a decline of 1,625 points. The other three trading days when the Sensex tanked over 1,000 points in a single day were February 28, 2020 (-1,448 points), January 21 (-1,408 points) and October 24, 2008 (-1,071 points).
The closest recovery was on August 25, 2015, when the Sensex gained around 291 points after the tumultuous fall of 1,625 points the previous day. The next was a recovery of just 63 points in the benchmark index on March 11, 2020 after a massive fall of 1,942 points in the previous trading session. On the other four occasions, no recovery was witnessed on the next trading day, although the Sensex jumped 864 points on the third trading day after a vast decline of 1,408 points on January 21, 2008
The Indian bourses halted the trade for 45 minutes during the early session today after Sensex and Nifty hit their lower circuit limits. Weak sentiment on Dalal Street improved marginally after market regulator Securities and Exchange Board of India (SEBI) issued a statement saying that it has a robust risk management framework in place which automatically gets triggered in response to movements in the indices. The market regulator added that it is further prepared to take suitable actions as may be required. "The prospect of concerted government and central bank action over the weekend to arrest a self-sustaining cycle of fear acted as a trigger for short covering this morning in global equities, while aggressive cash deployment by domestic funds has continued today," said S Hariharan, head - Sales Trading, Emkay Global Financial Services.