Sensex tumbles

Volatility took its toll on the market in early afternoon trade as
key benchmark indices tumbled to day's low on fresh selling. They
had opened slightly lower tracking negative overseas markets only
to rebound to day's high helped by banking and auto stocks. The
market breadth was strong. Caution may prevail ahead of Federal
Reserve meeting scheduled after Indian market hours today to decide
on US interest rates.

US crude futures tumbled yesterday, 4 August 2008, as OPEC output
rose for the third month in a row in July, outweighing concerns
about Tropical Storm Edouard. On the New York Mercantile Exchange,
September crude settled down $3.69 at $121.41 a barrel.

At 12:28 IST, the BSE 30-share Sensex was down 10.05 points or
0.08% to 14,567.82. It had opened 15.19 points lower at 14,562.68.
At the day's low of 14,529.21 hit in early afternoon trade, the
Sensex lost 48.66 points. At the day's high of 14,689.92 hit in
mid-morning trade, the Sensex 112.05 gained points.

The S&P CNX Nifty was down 6.9 points or 0.16% to 4,388.45

The market breadth was strong on BSE with 1507 shares advancing as
compared to 913 that declined. 75 remained unchanged.

The total turnover on BSE amounted to Rs 3093 crore by 12:30 IST on
BSE as compared to Rs 1983 crore by 11:30 IST

Among the 30-member Sensex pack, 19 advanced while the rest them
slipped.

Banking shares advanced on fresh buying in anticipation of reforms
in the financial sector post the UPA Government winning the trust
vote. India's second largest private sector bank in terms of net
profit HDFC Bank surged 3.73% to Rs 1150 on 1.72 lakh shares. It
was the top gainer from Sensex pack.

ICICI Bank (up 2.58% to Rs 657), and State Bank of India Bank (up
1.98% to Rs 1538.95), gained from the frontline banking pack.

Auto pivotals also joined the rally after crude oil plunged
yesterday, 4 August 2008. Tata Motors (up 1.93% to Rs 403.90),
Mahindra & Mahindra (up 2.95% to Rs 535), and Maruti Suzuki India
(up 0.52% to Rs 575.15), advanced.

India's largest power equipment maker by sales, Bharat Heavy
Electricals gained 0.52% to Rs 1723.20 after the company bagged an
order worth Rs 2500 crore to supply 800-megawatt generators for a
power plant in south India.

Hindustan Unilever (up 2.20% to Rs 239.20), ACC (up 1.18% to Rs
592.70) and Reliance Infrastructure (up 1.21% to Rs 520) edged
higher from Sensex pack.

India's largest private sector firm by market capitalization and
oil refiner Reliance Industries declined 0.78% at Rs 2224.75 on
5.42 lakh shares.

Tata Steel, India's largest private sector steelmaker by sales
slumped 5.02% to Rs 657 on 13.97 lakh shares. It was the top loser
from the Sensex pack. As per reports, the company has consolidated
all its overseas assets including Corus under a new holding
company, Tata Steel Global, to raise funds for its overseas
expansion including future acquisitions. Tata Steel Global, based
in Singapore with over $13 billion enterprise value, will raise
funds for international acquisitions of smaller steel makers and
mines.

Infosys (down 1.96% to Rs 1623.35), Ranbaxy (down 1.93% to Rs
514.50) and Jaiprakash Associates (down 2.01% to Rs 171), were the
other losers from the Sensex pack.

State-run oil marketing companies advanced after crude oil prices
plunged yesterday, 4 August 2008. Hindustan Petroleum Corporation
(up 2.27% to Rs 232), Bharat Petroleum Corporation (up 1.95% to Rs
334), and Indian Oil Corporation (up 1.77% to Rs 433.60), gained.

Stocks of the sugar companies advanced on reports the government
fixed lower free sale sugar quota in August 2008 at 900,000 tonnes.
Reports also suggested that sugar prices in Maharashtra may spike
to over-two-year highs in the first half of next year as output in
the year ending September 2009 may fall by over 37%.

Sakthi Sugars (up 3% to Rs 109.80), Triveni Engineering and
Industries (2.10% at Rs 103.80), Dwarikesh Sugar (up 1.79% to Rs
76.85), Balrampur Chini (up 1.33% at Rs 91.25), and Bajaj Hindustan
(up 1.27% at Rs 171), spurted on the back of such reports.

Thermax jumped 4.18% to Rs 470, extending previous day's gain after
the company bagged an order worth Rs 415 crore for setting up a
captive power plant for a leading steel making company. The company
made this announcement during trading hours on Monday, 4 August
2008 when the stock settled 3.33% higher at Rs 451.15.

Most Asian markets were trading lower today, 5 August 2008. Key
benchmark indices in China, Hong Kong, Taiwan, Singapore, and South
Korea were down by between 0.60% and 2.35%. However the Japanese
Nikkei 225 was up 0.17%.