Market ends flat in choppy trade despite Citigroup bailout

Mumbai, Nov 24 (PTI) Indian markets closed flat after
regaining the 9,000 level in intra-day as the rescue package
by US administration for financial giant Citigroup failed to
spark any major buying activity amid mixed trends in Asia.

The Bombay Stock Exchange bellwether Sensex settled the
day at 8,903.12, a meager fall of 12.09 points or 0.14
percent, from its last close.

National Stock Exchange index Nifty however also closed
marginally higher by 14.80 points or 0.55 percent at
2,708.25.

After opening lower, the 30-share Sensex immediately
bounced to regain the 9,000 level on buying triggered by US
government's a fresh lifeline of USD 40-billion capital
infusion and USD 306-billion guarantee in assets to crisis-
ridden Citigroup.

However, profit booking at every surge pulled down the
Sensex, diluting the positive impact of a rescue package for
Citigroup.

Marketmen said US government decision to bail out
Citigroup eased to an extent the gloomy outlook but investors
were unwilling to build fresh positions as other indications
from global financial markets were weak.

They said the bail out package for the global financial
giant did not realy elevate the sentiment as investors
remained nervous as the US bank has large portfolio holdings
in many Indian companies. Investors feared Citi may have to
liquidate them if problems get worsened.

The market fluctuated in a 340-point range during the day
as initial rally could not be sustained in the latter part of
day.

Generally, foreign investors remained on sidelines in the
prevailing market situation, while domestic funds were
believed to have made purchases in blue chips at lower levels.

In Asian indices, Shanghai Composite ended down 3.67
percent, Kospi 3.35 percent, Strait Times 2.52 percent and
Hang Seng 1.59 percent. Japan markets were closed Monday on
account of a national holiday.

European indices, however, were sharply up in the range
of 3.0-4.6 percent mainly because of a strong rally in bank
stocks following a bailout package for Citigroup.

Key stocks such as Satyam Computer fell by 4.57 percent,
ICICI Bank by 3.87 percent, DLF by 3.81 percent, SBI by 3.03
percent, HDFC Bank by 2.94 percent, Ranbaxy by 2.78 percent,
Grasim by 2.77 percent and Tata Steel by 2.53 percent.

However, Reliance Infra gained 4.0 percent, Maruti
Suzuki was up by 3.64 percent, Tata Power by 3.57 percent, TCS
by 2.79 percent and Bharti Airtel by 2.73 percent.

The market breadth was negative as 1,382 counters showed
losses, while 1,060 others ended with gains.

The trading volume was low at Rs 3,206.81 crore. Reliance
Industries was the top traded scrip with highest turnover of
Rs 281.69 crore followed by Reliance Capital (Rs 249.44
crore), SBI (Rs 228.23 crore), Reliance Infra (Rs 168.21
crore) and ICICI Bank (Rs 140.21 crore).

The broad-based BSE-100 index finished steady at 4,528.59
from its last close of 4,528.03.

The BSE-200 Index and the Dollex-200 showed fractional
variations at 1,048.17 and 348.53 at close, compared with
their previous close of 1,048.86 and 348.62 respectively.

Realty, bank, consumer durable and metal shares recorded
marked losses. As a result, the BSE Realty Index was down
62.12 points or 3.78 percent, the Bankex 144.22 points or
3.14 percent, the BSE CD index 41.82 points or 2.33 percent
and the BSE Metal Index by 67.87 points or 1.55 percent.