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The Sensex, which at one point had tumbled by 227 points during the day, bounced back and reduced losses before ending lower by 63.25 points at 8,891.61.
Marketmen said domestic funds resorted to buying helping avert any fall in the barometer.
India's economy grew the slowest in five year at 5.3 per cent for the third quarter against an impressive nearly 9 per cent in the same period a year ago as agriculture and manufacturing contracted.
The wide-based National Stock Exchange index Nifty declines 22 points at 2,763.65.
Tata Steel surged nearly 5 per cent after the company announced quarterly results, which were better than the market expectations.
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