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18 percent as domestic funds helped prop the market, dealers said. "In light of the developments in the stock exchanges, the RBI has been in touch with major settlement banks and both the major stock exchanges to ensure that the payment obligations on the exchanges are met smoothly," the RBI said in a statement.
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They said that statements by the central bank, the finance ministry and market regulator that any payment problems linked to the plunge would be handled by asking commercial banks, helped restore confidence.
The benchmark 30-share Mumbai stock exchange index closed down 456.
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84 points to 10,481.77 after it fell an intraday record 1,111.71 points to 9,826.9 before trading was halted for an hour in early market action.
Monday's trade continued a fall that saw the Sensex lose 12.3 percent in the previous six trading sessions, which prompted some investors to think it was a good time to buy.
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"Some of the funds were seen bottom fishing after the market re-opened. We still are concerned about the liquidity position relating to futures contracts over the next