Sensex falls by over 81 points

In volatile trading, the Bombay Stock Exchange benchmark Sensex on Tuesday fell by over 81 points in tandem with weak global trends but the central bank's reduction of key interest rates averted a major fall.

The Sensex, which touched an intra-day high of 11,068.82, dipped to a low of 10,764.08 points before ending with a loss of 81.39 points at 10,898.11.

Similarly, the 50-share National Stock Exchange index Nifty fell by 11.80 points at 3,365.30 after moving between 3,414.70 and 3,309.35 points.

Initial gains were wiped off after the Asian stock markets recorded heavy losses on renewed concerns over global economic weaknesses.

The day's losses were narrowed because of funds buying in stocks of interest rate-sensitive realty and fast-moving consumer goods after the Reserve Bank of India cut key interest rates to create liquidity in the market.

Selective buying by foreign funds in healthcare and teck stocks arrested the falling trend. The major contributors to the weakening market were shares in banking, auto, capital goods, metal, IT, consumer durables, power, PSUs and refineries.