Short-covering restricts Sensex fall to 76 points

Benchmark stock indices fell for the six straight session, despite a smart pull back rally in the last half hour's trading due to short-covering and buying in banking and auto stocks.

Mid- and small-cap stocks declined the most on a day of volatile trading, which saw most Asian stocks tank on concerns that widening credit-market losses will slow economic growth.

While foreign institutional investors were still selling, big buying has come from domestic institutional investors at lower levels.

Market sources also inform that some of the large broking houses who had come under the margin call pressure due to Tuesday's sharp fall had offloaded a chunk of shares in the early hours of trading session. The Sensex after touching a low of 18,182 on Thursday closed marginally down by 0.41 per cent or 76.30 points at 18,526.32.

The broader index CNX S&P Nifty of the National Stock Exchange (NSE) was down by 0.75 per cent or 41.70 points at 5,519.35.