Sensex closes 93 points higher

Updated at 4.20 pm

MUMBAI: The benchmark 30-share Bombay Stock Exchange Sensex shrugged off the early selling and domestic funds came in to help the index close up 93.17 points to 10,666.32 on Thursday.

Sensex gained 0.88 percent in volatile trade as sentiment improved with the smooth completion and rollover of the monthly derivatives contract, dealers said.

They said buying support from domestic funds in consumer goods and metal stocks saw the Sensex gain in late afternoon trade.

The markets had opened on a weak note, plunging nearly 300 points on concerns of poor liquidity and an absence of overseas fund buying.

Retail investors were largely absent for the second consecutive day, hit by losses over the last week, dealers said.

Overseas investors led the selling on concerns ranging from the prospect of rising interest rates and falling metal prices to worries over the impact of high oil prices on emerging economies like India.

"The rollover (of the futures contract) was smooth. Buying support also came from domestic funds in metal and consumer goods stocks which had been hit since last week," said Soumeel Chakravarthy, a dealer at brokerage KJMC Capital Market Services.