Saturday, May 27 2006 12:56 Hrs (IST) - World Time -

Mumbai: The stock markets stabilised after the benchmark recorded the highest ever fall of 1112 points to 9,826.91 on May 22 and ended the week at 10,809.35, which is 1.18 per cent lower than last weekend's close of 10,938.61.

The Bombay Stock Exchange (BSE) 30-share sensitive index (sensex) returned to a certain level of stability after the dramatic fall, staging a major recovery to wind up the week at 10,809.35 against last weekend's close of 10,938.61, a loss of 129.26 points in the week under review.

Similarly, the National Stock Exchang's (NSE) S&P CNX Nifty also recovered from its lows and closed the week at 3,209.60, still down by 37.30 points from previous weekend's close of 3,246.90.

Monday's fall on the BSE was the worst ever in terms of points in the history of stock markets. The authorities were forced to suspend trading for an hour as the market fell by 10 per cent lower limit, first such occasion after May 17, 2004, when trading was suspended twice during the session.

The markets began stabilising only after the government's assurance of providing all assistance to overcome liquidity problems as also the damage control exercise initiated by the market regulator Securities and Exchange Board of India (SEBI) and stock exchanges.

Leading investment funds even commended SEBI for its efforts and remedial excercise to bring stability in the sinking market.

The decision of the BSE and the NSE on Thursday to reduce exposure margins in the Cash and derivatives segment by 50 per cent helped ease pressure on brokers.