Sensex bounces back in volatile trade

MUMBAI: Indian share prices recovered on Tuesday from sharp early losses and closed up 0.44 percent to stop a three-day slide linked to a drop in global metal prices and selling by overseas funds, dealers said.   

They said domestic funds brought on the rally by buying index-linked cement and infrastructure stocks as fears of a sell-off in global commodity prices eased.   

The benchmark 30-share Sensex index gained 51.53 points to 11.873.73 after falling almost 450 points in early trade to an intraday low of 11,378.90.   

On Monday, the Sensex fell 462.91 points or 3.9 percent to 11,822.2 which followed a slide of 150.3 points on Friday and 176.97 points on Thursday.   

"The markets were clearly overbought till the slide came. Though external factors hit the markets, we expect cautious trading and the Sensex to remain range-bound," said Krishna Kumar Karwa, managing director of Emkay Share and Stock Brokers.   

Losers led gainers 1,832 to 670 on volume of 52.76 billion rupees (1.15 billion dollars).   The rupee fell to a five-month low of 45.6 against the dollar from a previous 45.3.

It strengthened marginally verus the euro to 58.3 from a previous 58.9.    Cement major Associated Cement Companies (ACC) closed up 41.7 rupees or 4.84 percent to 903.5 rupees on domestic fund buying.

Diversified private sector Grasim rose 56.2 rupees or 2.65 percent to 2,182.2 rupees.  Index-heavyweight Reliance Industries recovered to close 22.5 rupees or 2.1 percent higher at 1,043.3 rupees.