MUMBAI: The BSE Sensex provisionally rose 1.65 percent on Friday as investors picked bargains in the battered market that fell 1.8 percent early, a day after dropping to their lowest close in more than three years.
The 30-share BSE index closed up 134.90 points at 8,332.82 points. Twenty-two stocks advanced.
The 50-share NSE index provisionally ended up 1.64 percent at 2,619.05.
Earlier, the Sensex bounced up more than 1 percent in afternoon trade and by 2:37 p.m., the 30-share BSE index was up 1.3 percent at 8,305.49 points.
The 50-share NSE index was up 1.45 percent at 2,614.
Earlier in the day, the Sensex fell 1.2 percent, following weak Asian markets, as General Motors' bankruptcy warning flared concerns about the health of the global economy.
Shares in embattled software firm Satyam Computer Services Ltd were up more than 5 percent at 36.90 rupees after it received approval from India's market regulator to kickstart a process to sell a 51 percent stake, in a move likely to attract more bidders.
By 9:56 a.m., the 30-share BSE index was down 1.26 percent at 8,094.39 points.
The 50-share NSE index was down 0.9 percent at 2,553.85.
Earlier report:
Shares in Satyam Computer Services will be in focus after the fraud-hit outsourcer said it had received regulatory approval to start a global bidding for 51 percent of the company.
Increasingly risk-averse foreign funds, who have pulled about $2.1 billion from Indian stocks this year, are expected to step up their withdrawals, traders said.
Shares such as consumer goods firm Hindustan Lever Ltd and diversified cigarette maker ITC Ltd that had been holding fort were also vulnerable as investors pull out,
V.K. Gupta, head of research at Anagram Stock Broking, said.
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, he 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.
By 0400 GMT, Japan's Nikkei was down 2.7 percent, while MSCI's measure of other Asian markets fell 0.8 percent.
Nifty futures traded in Singapore were trading down 1.4 percent, pointing to a lower opening in India.
On Thursday, the 30-share BSE index fell 2.94 percent to 8,197.92, its lowest close since Nov. 2, 2005, after a half-point rate cut failed to bolster investor confidence and smother concerns about sagging growth.
STOCKS TO WATCH
* Wockhardt Ltd, after the Economic Times reported Pfizer Inc and French drug firm Sanofi-Aventis are in the race to acquire a significant stake in the Indian firm's biotechnology business.
* Bharati Shipyard Ltd, after India's second largest private shipbuilder said it received an order from India's Ministry of Defence worth 2.81 billion rupees.
* Apollo Tyres, after the tyre maker said it had resolved a lockout at its unit in Kochi, which would become operational from Friday.
* Geodesic Ltd, after the software firm said it would buy back 25 percent equity at not less than 75 rupees each.
