Sensex ends flat after early panic

Mumbai: Indian shares pulled out from a nosedive to end almost level on Tuesrday after starting down 3.5 per cent, as domestic funds chased bargains in the battered market and triggered hectic short covering.

But the outlook remained shaky on worries the collapse of Lehman Brothers and troubles at American International Group would aggravate risk aversion among foreign investors and accelerate withdrawals that have topped $8.2 billion this year.

Value buying

ICICI Bank said it had exposure to 57 million euros ($81 million) of Lehman Brothers senior bonds, adding the potential losses were not material. ICICI shares ended down 5.8 per cent at Rs591.35, their lowest close in two months.

The 30-share BSE index ended down 0.09 per cent, or 12.47 points, at 13,518.80, after starting at the day's low of 13,051.73. Twenty index components fell.

"There are value buying attempts but the question is how long will this sustain," said Rajesh Jain, chief executive at Pranav Securities.

The 50-share NSE index rose 0.05 per cent to 4,074.90.