Breadth turns negative

Fresh selling pulled key benchmark indices to day's low in early
afternoon trade. But the market soon cut losses. The BSE 30-share
Sensex was down 123.95 points. The market breadth turned negative
after firm start. Refinery shares slipped after crude oil rebounded
from a 7-month low. However auto pivotals gained. Tata Steel staged
a smart recovery from early low.

The US Federal Reserve in a meeting on Tuesday, 16 September 2008
announced an $85 billion rescue plan to help American International
Group in exchange for a 79.9% stake. The deal would avoid the
biggest corporate bankruptcy ever and follows a government bailout
of mortgage lenders Freddie Mac and Fannie Mae earlier this month

Meanwhile, the US Federal Reserve at its policy meet on Tuesday, 16
September 2008, kept its target for the federal funds rate at 2%.
Fed said that the strains in financial markets have increased
significantly and labour markets have weakened further. Economic
growth appears to have slowed recently, partly reflecting a
softening of household spending.

At 12:25 IST, the BSE 30-share Sensex was down 123.95 points or
0.92% to 13,394.85. The Sensex opened with a upward gap of 101.94
points at 13,620.74, which is also its day's high so far, boosted
by Fed's rescue plan for AIG. At the day's low of 13,309.67 hit in
early afternoon trade, the Sensex lost 209.13 points.

The S&P CNX Nifty lost 34.70 points or 0.68% to 4,040.20.

National Stock Exchange (NSE) on Tuesday, 16 September 2008, said
there are no outstanding open positions/settlement obligations of
Lehman Brothers Securities currently in the cash market segment and
derivatives segment of NSE. Lehman Brothers Securities can operate
only in the cash market segment on pre-funding of their trades, NSE
said.

The Reserve Bank of India (RBI) on late Tuesday, 16 September 2008
stepped in with measures to support the rupee -- which has been
battered to almost 47 against the dollar -- and supply cash in the
money market. The move will increase dollar supply and lower banks'
borrowing cost in the overnight call money market. RBI has hiked
the maximum interest that banks can pay on NRI deposits by 50 basis
points for dollar as well as rupee deposits.

The market breadth turned negative on BSE with 1234 shares
declining as compared to 1076 that advanced. 78 remained unchanged.

The BSE Mid-Cap index fell 0.25% to 5,204.39 and the BSE Small-Cap
index rose 0.11% to 6,296.47

The total turnover on BSE amounted to Rs 2406 crore by 12:30 IST as
compared to Rs 1631 crore by 11:30 IST

Among the 30-member Sensex pack, 23 slipped while the rest gained.

State-run oil refiners slipped after crude oil price rebounded from
a 7-month low. Indian Oil Corporation (down 2.97% at Rs 405.75),
BPCL (down 5.97% at Rs 340), and HPCL (down 3.58% at Rs 239.90),
slipped. However Cairn India galloped 3.63% to Rs 205.70

US light crude for October 2008 delivery gained $3.15 to $94.30 a
barrel today, 17 September 2008, following a $85 billion bailout of
American International Group sparked a relief rally on Wall Street.

Auto shares gained on fresh buying. India's top truck maker by
sales Tata Motors rose 0.78% to Rs 401.50. The company reportedly
paid lower advance tax to Rs 75 crore in Q2 September 2008 as
compared to Rs 190 crore in Q2 September 2007.

Mahindra & Mahindra, the country's top tractor maker by sales
gained 0.70% to Rs 573. The company reportedly paid higher advance
tax of Rs 116 crore in Q2 September 2008 as compared to Rs 83 crore
in Q2 September 2007.

India's top oil exploration firm by market capitalisation Oil and
Natural Gas Corporation (ONGC) gained 3.18% to Rs 983, after the
company said it has agreed to give Rocksource ASA, a Norwegian
company, 10% participating interest in deep water block in the
eastern offshore. It was the top gainer from Sensex pack.

Most IT pivotals held firm. Infosys (up 2.57% to Rs 1598.05), Wipro
(up 0.29% to Rs 392.90), and Satyam Computer Services (up 1.72% to
Rs 362.45) gained.

However India's largest software services exporter TCS slipped
0.87% to Rs 743 despite reports of the company paying higher
advance tax to Rs 120 crore in Q2 September 2008 as compared to Rs
20 crore in Q2 September 2007.

Ranbaxy Laboratories, India's top drug maker by sales plunged 6.86%
to Rs 378.25 and was the top loser from Sensex pack. The stock
tumbled on reports the US government has banned more than 30
generic drugs made by the company citing poor quality in two of its
Indian factories. The stock was already on a sustained downtrend
ever since the Japanese drug maker Daiichi Sankyo's open offer to
acquire an additional 20% stake at Rs 737 a share in the company
ended on 4 September 2008.

India's largest private sector bank in terms of net profit ICICI
Bank plunged 5.78% to Rs 557.15 on reports the bank will have to
take a hit of $28 million on account of the additional provisioning
that ICICI Bank's UK subsidiary will have to make after Lehman
Brothers Holdings, the fourth-largest investment bank filing for
bankruptcy.

Other banking pivotals also edged lower. India's largest state run
bank in terms of net assets State Bank of India fell 2.40% to Rs
1547.40. As per recent reports, the bank paid 48% higher advance
tax to Rs 1560 crore in Q2 September 2008 over Q2 September 2007.

India's second largest private sector bank in terms of net profit
HDFC Bank fell 1.79% to Rs 1208.05

India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 2.05% to Rs
1888.90 on 5.94 lakh shares. The stock had hit a 52-week low of Rs
1800 in intra-day trade on Tuesday, 16 September 2008. As per
reports, the company is expected to start pumping gas from November
2008 from its deep-water field off the east coast.

India's largest private sector steel maker by sales, Tata Steel
recovered sharply from day's low of Rs 467.95. It was now down
0.48% to Rs 485.30. As per reports, the company paid lower advance
tax to Rs 300 crore in Q2 September 2008 as compared to Rs 350
crore in Q2 September 2007.

Sterlite Industries (down 4% to Rs 458.60), ITC (down 3.63% to Rs
187.20), and Grasim (down 1.65% to Rs 1895.10), edged lower from
the Sensex pack.

Aurobindo Pharma rose 0.49% to Rs 310.05 after the company said it
has received tentative approval from US Food & Drug Administration
for Abacavir sulphate tablets in the strength of 60 miligram. The
company made this announcement during trading hours today, 17
September 2008.

JSW Steel rose 1.40% to Rs 655.95 on reports the company expects
prices and demand for the metal to revive soon as companies lower
production.

Asian markets were trading mixed today, 17 September 2008. Key
benchmark indices in China, Hong Kong and Singapore, were down by
between 0.86% and 1.85%. However indices in Japan, Taiwan, and
South Korea rose by between 0.77% and 2.84%.