The Nifty 50 had lost 4.4% over the last five sessions,
while the Nifty financials index slid 5.3%.
The volatility index surged to 17.36, the highest
since Feb. 2, the day after the union budget, before closing
above 16.2.
Ten of the 13 major sectoral indexes advanced, with the
high-weightage financials rising 0.31%.
Fast-moving consumer goods rose over 1% after
analysts flagged signs of recovery in rural growth while metals shed over 2.5% on broader demand worries and risk
aversion.
Market sentiment was dented by fears of contagion in the
global financial sector after Credit Suisse's woes
meant its stock plunged as much as 30% to a record low on
Wednesday.
It recovered some ground on Thursday, jumping 24% after it
announced it was borrowing up to $54 billion from Switzerland's
central bank. The news propped up European markets, which
rebounded from the sharp fall in the previous session. While there is no material impact on Indian markets due to
Credit Suisse, the sentimental impact is obvious, three analysts
said.
"Whenever a bank opts for emergency funding, it means things
are really bad, as an emergency fund is the last resort," said
Avinash Gorakshakar, head of research at Profitmart Securities.
Among individual stocks, Zee Entertainment jumped 9.34% after a report said that the media company agreed to repay $10 mln dues owed to IndusInd Bank .
Titan jumped over 2% after global brokerage firm JP Morgan termed it the preferred discretionary play.
($1 = 82.8800 Indian rupees) (Reporting by Nishit Navin and Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza and Janane Venkatraman)
