Business | Markets
Indian shares stage late rally to cut losses
Indian shares staged a late rally to trim losses to 0.9 per cent on Tuesday, helped by domestic institutional buying in battered blue chips, but sentiment was weak after British banks were hammered on funding worries.
- Reuters
- Published: 23:26 October 7, 2008
Mumbai: Indian shares staged a late rally to trim losses to 0.9 per cent on Tuesday, helped by domestic institutional buying in battered blue chips, but sentiment was weak after British banks were hammered on funding worries.
Top vehicle maker Tata Motors bucked the trend and rose 0.9 per cent to Rs316.60 on reports it had found a new home for its ultra low-cost car Nano in the western state of Gujarat.
Traders said a deepening global credit crisis and continued selling by foreign funds more than offset the central bank's liquidity-boosting measures on Monday.
Most bank stocks surrendered gains to end weaker. ICICI Bank ended down 1.1 per cent at Rs485.20, and HDFC Bank fell 6.2 per cent to a two-month closing low of Rs1,127.70.
"It is the ripple effect. The credit crisis is extending to Europe and foreign funds are taking away as much as they can from India," said RK Gupta, managing director of Taurus Mutual Fund.
The 30-share main index ended a choppy day down 106.46 points at 11,695.24, a third consecutive fall that took it its lowest close since September 12, 2006, with 16 components losing ground.
The index rose as much as 3.2 per cent in morning trade and fell as much as 2.5 per cent in afternoon deals in a volatile session after the market had fallen 5.8 per cent on Monday.
The 50-share NSE index rose 0.12 per cent at 3,606.60.
Investors shrugged off the removal of most curbs on indirect investment notes by foreign institutional investors (FIIs) to stem outflows from the battered stock market.
Foreign funds have sold a net $9.9 billion of shares in 2008, and the benchmark index has fallen more than 42 per cent this year.
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