LIC spotted buying shares: dealers

Buying allows main indexes to cut losses

Life Insurance Corporation was spotted buying shares on Wednesday, two dealers who handle trades on behalf of India's largest state-run insurer told Reuters.

The buying allowed India's main indexes to cut losses, with the Nifty down 2% after earlier falling as much as 3.2%.

"LIC started buying Indian shares when Nifty fell over 2.5%, thereby bringing some support at lower levels" said one of the sources, who is an institutional sales trader at a domestic brokerage house.

Both sources declined to be identified as they were not authorised to discuss the trades.