Sensex down by 101 points

MUMBAI: Stock markets recouped in late afternoon trade on government's ruling out an armed conflict against Pakistan and the benchmark Sensex closed the day down by over 100 points after trimming its hectic early losses suffered on fall in the US markets overnight.
    
The bourses were under severe pressure right from the beginning due to heavy battering in global markets on news of a US committee officially acknowledging that the world's biggest economy is in recession. The Sensex had shed hectic 325 points in early trade.
    
A rather dramatic recovery came in late afternoon trade when India sought to allay fears of an armed conflict with Pakistan, saying military action is not being considered.
    
The Bombay Stock Exchange 30-share barometer settled the day at 8,739.24, a fall of 100.63 points, or 1.14 per cent, from its previous close.
     
Auto stocks were battered again with Tata Motors, Maruti Suzuki and Mahindra and Mahindra reporting sharp drops in sale in November. Auto sector index closed the day lower by 3.04 per cent, the biggest loss among all sectoral indices on Tuesday.
    
The broader 50-share Nifty of the National Stock Exchange also lost 25.10 points or 0.94 per cent to close at 2,657.80 from its last close.
    
Global markets plunged on grim economic situation facing the world economy. A panel of economists of US National Bureau of Economic Research has noted that the US, the world's biggest economy entered into recession in December last year after 73 months of economic expansion since November 2001.
     
The committee's word is regarded as the final on the question if America has entered into recession.
    
Asian indices ended sharply lower by about 2.3 per cent to 6.3 per cent following a plunge in US stocks on Monday. Key American indices tumbled by about 7.5 to 9.0 per cent.