Mumbai: Indian shares extended losses to 2% on Thursday afternoon, tracking weak Asian peers and as investors booked profits on an 80% rally since early March.
At 1:43pm, the 30-share BSE index was down 2% at 14,238.05 points, with 22 stocks declining.
The 50-share NSE index was down 2.9% at 4,230.10.
Shrugging off early losses, the Bombay Stock Exchange benchmark Sensex had gained 58 points at noon briefly on revival of buying, backed by reports of an easing inflation.
The Sensex, which lost nearly 435 points in previous day’s trading and commenced the day lower by 187 points, rebounded to trade higher by 57.84 points at 14,580.68.
Similarly, the wide-based National Stock Exchange index Nifty rose by 19.15 points to 4,375.30.
Marketmen said buying activity picked up soon after announcement came that inflation touched minus 1.61 per cent for the week ended 6 June, as wholesale prices shrunk for the first time in 30 years.
India possibly stood as the only country now recording deflation, though the European region is nearing the zero rate of inflation on account of recession.
Markets bounced around their previous close as bouts of profit taking on an 80% rally since early March were offset by some buying by long-term investors a day after the market dropped 2.9%.