The benchmark 30-share Bombay Stock Exchange index slid for a second straight day to end at a new two-month closing low on Thursday, but losses were milder amid hopes foreign investments into India could pick up again after reports that Fidelity's India fund had raised $1 billion.
Positive news or reports on index stocks such as Reliance Industries Ltd., Tata Iron and Steel Ltd., helped lift the benchmark Bombay Stock Exchange index from the day's trough, though falls in other index heavyweights like Oil and Natural Gas Corp. Ltd. kept the index down.
The 30-share index fell 0.18 per cent to 6,442.87 points, the lowest since Jan. 28's 6,419.09. But Thursday's losses were modest following the 3 per cent slide of the preceding two sessions.
More than 200 million shares changed hands on the Bombay Stock Exchange, with losers outnumbering gainers 1,609 to 504.
The broader 50-share National Stock Exchange index closed 0.54 per cent lower at 2,015.40 points. "There are signs support is coming in, and the momentum of the market's falls is slowing, which is encouraging," said Ajit Sanghvi of MSS Securities.
The Sensex has lost nearly 7.4 per cent after hitting a record high of 6,954.86 points on March 9 as investors, especially foreigners, pocketed profits and waited for fresh leads, which could come from next month's earnings announcements. Spiralling oil prices had fuelled the selling.
But the market found hope from a 4 per cent drop in oil prices on Wednesday, and reports that foreign institutional investor Fidelity had raised $1 billion from Japan for investing in India.
"Foreign funds are raising money and domestic funds have also received good inflows over the past few weeks, so liquidity should drive the market up again," Sanghvi said.
Notable gainers on Thursday included Reliance Industries Ltd., with expectations rife that an ownership imbroglio within the Ambani family, founders of the Reliance group, was to be resolved soon.
The stock, which has a weightage of 11.33 per cent in the Sensex, was up 1.26 per cent at 560.10 rupees.
Tata Iron and Steel Ltd., which is expected to get higher prices for its products from April, rose 1.15 per cent to 413.05 rupees. The stock has a weightage of 4.53 per cent in the Bombay index.
These were among the highest traded shares on the Bombay Stock Exchange.
But most other stocks continued to succumb to profit-taking.
Oil and Natural Gas Corp. Ltd., which has a weightage of 4.80 per cent in the Sensex, was down 1.30 per cent at 850.80 rupees.
