RBI, Sebi moves fail to cheer bulls

A deepening global credit crisis and continued selling by foreign funds more than offset the decision by the RBI to cut cash reserve ratio and the Sebi move to liberalise foreign investment rules. However, stocks staged a late rally to trim losses to 0.9 per cent on Tuesday, helped by domestic institutional buying in battered blue chips, but sentiment was weak after British banks were hammered on funding worries. The 30-share Sensex ended a down 106.46 points at 11,695.24, a third consecutive fall that took it its lowest close since September 12, 2006. Tata Motors bucked the trend and rose 0.9 per cent to Rs 316.60 on hopes it had found a new home for its ultra low-cost car Nano in Gujarat. Most bank stocks surrendered early gains to end weaker. ICICI Bank ended down 1.1 per cent at Rs 485.20, and HDFC Bank fell 6.2 per cent to a two-month closing low of Rs 1,127.70. Foreign funds have sold a net $9.9 billion of shares in 2008, and the benchmark index has fallen more than 42 per cent this year.