Energy explorer Cairn India fell 2% after approval for Vedanta Resources' deal to buy majority stake in the unit of Cairn Energy for about $9.6 billion was further delayed. On Wednesday, the government deferred a decision on the deal by referring it to the Group of Ministers for further review, and Cairn Energy and Vedanta on Thursday also extended the deadline. The 30-share index closed down 0.11%, or 21.02 points, at 19,591.18, with 17 of its components losing ground.
The smallcap and the mid-cap rose 1.25% and nearly 1%, respectively. Around 329 million shares were traded on the BSE , better than the 30-day daily average volume of 292 million shares. "It is just a pause after the rally we saw," said Rakesh Rawal , head of private wealth management at broking firm Anand Rathi . "Looking at the inflows we have had off late, the probability of a strong upside is much more than a downside ."
The benchmark index had rallied 9.1% in March, notching its biggest gain in six months. Foreign funds have pumped around $2.8 billion into equities since the start of March, after being net sellers in the first two months, on hopes a market correction made the market attractive given economic growth was still robust.
Maruti Suzuki dropped 1.2% after the top car maker said late on Wednesday it would recall 13,157 diesel engine cars. The 50-share NSE index Nifty dropped 0.1% to 5885.70 points.
Source : ET