Senior Shiv Sena leader Manohar Joshi said on Friday that party chief Bal Thackeray's condition is improving and urged people not to trust rumours or create panic.
The crowds outside the Thackeray residence, Matoshree, also started to thin down.
"Balasaheb is showing a lot of improvement and is recovering. Don't trust rumours and do not create panic," Joshi said.
Shiv Sena executive president Uddhav Thackeray insisted that the Sena chief was stable and responding to medications late on Thursday night.
He had urged Shiv Sainiks to keep praying saying he had not lost hope and believed in the power of prayers.
Shops in Sena dominated areas of Lalbaug, Parel, Shivdi, Dadar, Borivali, which brought down shutters on Thursday were seen opening for business as usual.
The traffic situation in all areas, including the Mahim-Bandra stretch where people were seen assembling, was seen under control.
Although Sena functionaries said senior Thackeray is stable, his doctors on Friday morning maintained that his condition was critical.
He continues to breathe on a Bi-Level Positive Airway Pressure (BiPAP), a non-invasive ventilator.
They added that Thackeray has multi-organ failure, including renal failure, however he has a terminal rhythm where the heart shows some activity but does not contribute enough to keep vital organs alive.
The security measures taken by the police remained the same, with Rapid Action Force deployed outside the Bandra residence and high alert in communally sensitive areas.
And while the crowds seemed to diminish, several VIP's continued to trickle in to check on the health of the Sena chief.
Yoga guru Baba Ramdev and late filmmaker V Shantaram's son Kiran Shantaram visited the ailing leader on Friday morning.