Mumbai: The benchmark Sensex recovered by 49 points after a weak opening on emergence of buying by funds in fundamentally strong stocks.
The Bombay Stock Exchange barometer, which had lost over 150 points at the outset, was trading higher by 49 points at 8,246.92 at 12am with most of the banking and capital goods shares posting smart gains.
Meanwhile, wide-based National Stock Exchange’s index, Nifty, rose by 15.10 points to 2,591.80. It had dipped to 2,539.45 points in the opening session.
Marketmen said the market turned positive as investors purchased fundamentally strong shares available at attractive low levels. They said heavy selling in last two trading sessions pulled down the market to a 40-month low level.
Shares pared losses after falling as much as 1.8% early on Friday as investors chased bargains in the battered market that had dropped to its lowest close in more than three years in the previous session.
Shares in Satyam Computer Services jumped 17.8% to Rs41.35 after the fraud-hit outsourcer said it had received regulatory approval to start a global bidding for 51% of the company.
Traders said there was still nervousness after General Motors’ bankruptcy warning flared concerns about the health of the global economy and sent Asian markets lower.
GM’s bankruptcy warning intensifies fears about financial markets worldwide, which have been pummelled as investor confidence has failed to improve in spite of stimulus packages and rescues, traders said.
GM said on Thursday said its auditors had raised “substantial doubt” about its ability to survive outside bankruptcy if it fails to stem its losses and stop burning cash.
Asia stocks slid as a drop in Wall Street shares to 12-year lows highlighted the severe troubles of major US companies and banks.