Business | Markets
Domestic buying helps Indian shares rebound
India's main share index fell below 11,000 points on Wednesday for the first time since August 2006 due to fears of a global recession, but recovered some losses to end 3.1 per cent lower, helped by local institutional buying.
- Agencies
- Published: 00:21 October 9, 2008
Mumbai: India's main share index fell below 11,000 points on Wednesday for the first time since August 2006 due to fears of a global recession, but recovered some losses to end 3.1 per cent lower, helped by local institutional buying.
Ranbaxy Laboratories, which has agreed to be taken over by Japan's Daiichi Sankyo, rose as much as 11 per cent on a media report a legal motion against the company had been withdrawn in the United States.
The stock ended 9.1 per cent up at Rs279.25.
Sentiment remained weak as foreign fund selling continued unabated.
After Indian markets shut, the US Fed led a coordinated round of global official rate cuts, easing its Fed funds rate by half a percentage point to 1.5 per cent.
"There was a bit of short-covering in the second half and some long-term investors such as insurance firms punted on the long," Rajesh Jain, chief executive of Pranav Securities, said of the partial recovery in Indian shares.
Foreign funds have sold a net of $10 billion in Indian shares this year compared to a record inflow of $17.4 billion in 2007.
The Sensex closed down 3.14 per cent at 11328.36.
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