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Down Syndrome: The mood outside the Bombay Stock Exchange  building, as investors watch the digital broadcast  yesterday. Pic/Bipin Kokate

For a festival of lights, there was sure a lot of doom and gloom around as markets plummeted again, leaving the Sensex tottering at 8,509.56 points at close yesterday.

Now analysts are looking forward for some temporary respite at the mahurat session that will begin today at 6.15 pm and last for an hour.

Still hopeful

"The markets yesterday fell by 12 per cent but since mahurat trading will go on today evening, we expect some cheer since the European markets will be actively underway and Asian markets are expected to open strong," said Alok Churiwala, MD of Churiwala Securities.

The status quo is a far cry from the scenario on Diwali eve last year when the markets closed at 19,058.93 on November 8, 2007.

"There were some rumblings of trouble with US markets and sub-prime lending last year, but they were ignored. Indian investors felt nearly invincible," said Churiwala.

No bonus

The slump, he added, has affected all. "Companies have cut on bonuses and corporate giving has decreased. Most are simply waiting for markets to hit rock bottom or for the experts to tell them when the markets get there. Of course, I would think that this is a good time to buy but it's easier said than done," he said.

Still optimistic

Despite investor nervousness, Religare Securities president Amitabh Chakraborty was optimistic. "Right now, the earnings of the Indian companies are good. The Indian equities market knows that the Indian economy will grow at 7 per cent and the inflation would be lower next year," he said.

Chakraborty added the market would stabilise once the American economic numbers are known. "Added Apoorva Shah, head research (institutional equities), Prabhudas Lilladher, "It has been a continuation of what has been happening during the past few days. The European market opened weak but recovered a bit.

"FIIs are selling in India and it is the time to buy stocks of companies involved in infrastructure, IT and banks."

Chetan Sehgal, a Delhi-based 21-year college student and part-time investor, believes the crash opens up an opportunity.

"It's better to invest in the market now, when stock prices are low. In January, the Sensex was ruling at 21,000 points, now it is 8,000."