Indian shares close flat, market subdued by terrorist attack

The market barometer rose 0.73 percent or 66 points to close at 9092.72 as the standoff between the terrorists and the Indian security forces dragged on to the third day.

The 30-share benchmark index remained closed yesterday after several unidentified heavily armed terrorists attacked upscale hotels, restaurant, railway terminus, movie hall and a Jewish center in Mumbai on late Wednesday night. The resulting battle between the security forces and the terrorists have left at least 150 dead and over 400 injured. Flush out and rescue operations are still being carried out.

The prime index opened lower at 8889.18 and after a choppy trading session during which it touched a high of 9157.62, the Sensex posted its highest close this week.

Despite Friday's gain, however, the Sensex is still down about 58 percent in 2008, making it one of the worst performing markets in Asia.

Sixteen components gained today, with tech stocks like Tata Consultancy Services (up 5.89 percent), Infosys Technologies (up 4.49 percent), Satyam Computer Services (up 2.60 percent) and Wipro (up 0.95 percent) outperforming the market as the

domestic currency weakened against the US dollar.

Auto stocks advanced led by Mahindra & Mahindra and Maruti Suzuki, which climbed 4.47 percent and 0.67 percent respectively.

Among metal stocks, aluminium majors Sterlite Industries (up 2.58 percent) and Hindalco Industries (up 0.95 percent) posted gains.

Financial stocks Housing Development Finance Corporation and HDFC Bank advanced 3.34 percent and 1.46 percent respectively.

Other major gainers were BHEL (up 4.78 percent), Bharti Airtel (up 2.50 percent) and Tata Power (up 2.18 percent).