IT pivotals gain

Key benchmark indices stayed subdued weighed by index heavyweights
Reliance Industries and ICICI Bank. Fresh selling had pulled
bourses lower despite firm start which was boosted by the US
Federal Reserve's bailout package for the beleaguered US insurer
American International Group (AIG). Meanwhile, the US Federal
Reserve kept its target for the federal funds rate at 2%.

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

Most IT pivotals were in demand. Banking shares showed mixed trend.
However Ranbaxy Laboratories slumped over 8% and ICICI Bank shed
over 4%. The market breadth was positive.

At 11:21 IST, the BSE 30-share Sensex was down 102.26 points or
0.76% to 13,416.59. The Sensex opened with a upward gap of 101.94
points at 13,620.74, which is also its day's high so far. At the
day's low of 13,329.98 hit in mid-morning trade, the Sensex lost
188.82 points.

The S&P CNX Nifty lost 29.75 points or 0.73% to 4,045.15.

The market breadth was positive on BSE with 1063 shares advancing
as compared to 994 that declined. 76 remained unchanged.

The total turnover on BSE amounted to Rs 1631 crore by 11:30 IST as
compared to Rs 517 crore by 10:30 IST

The 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.

Meanwhile, Barclays has agreed to acquire US fourth largest
investment banking firm Lehman Brothers' North American investment
banking and capital markets businesses. Barclays said it would
acquire trading assets with an estimated value of 40 billion pounds
and trading liabilities worth 38 billion pounds. It will also
acquire Lehman's New York headquarters.

Among the 30-member Sensex pack, 18 slipped while the rest gained.

Ranbaxy Laboratories, India's top drug maker by sales plunged 7.48%
to Rs 375.70 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 3.71% to Rs 569.55 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 saw divergent trend. India's largest state
run bank in terms of net assets State Bank of India fell 1.44% to
Rs 1563. 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 rose 0.12% to Rs 1231.50

India's largest private sector steel maker by sales, Tata Steel
fell 3.19% to Rs 472. 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), Hindustan Unilever
(down 1.68% to Rs 236.70), and Grasim (down 1.90% to Rs 1890),
edged lower from the Sensex pack.

India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 2.05% to Rs
1888.90 on 4.48 lakh shares. The stock had hit a 52-week low of Rs
1800 in intra-day trade on Tuesday, 16 September 2008.

Most IT pivotals gained on fresh buying. India's second largest
software services exporter Infosys surged 3.73% to Rs 1622.60 and
was the top gainer among the Sensex pack.

Wipro (up 1.57% to Rs 397.70), Satyam Computer Services (up 2.71%
to Rs 366) and gained.

However India's largest software services exporter TCS slipped
0.21% to Rs 747.95 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.

India's top oil exploration firm by market capitalisation Oil and
Natural Gas Corporation (ONGC) gained 2.76% to Rs 978.80, 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.

Among the side counters, Mather & Platt Pumps (up 20% to Rs
168.60), Videocon (up 15.35% to Rs 38.70), and Prithvi Information
Systems (up 14.38% to Rs 98.80), surged.

Hydro S&S Industries galloped 7.93% to Rs 44.25 after the company
said its board has approved buyback of equity shares of the company
for an amount not exceeding Rs 2.63 crore. The company made this
announcement before trading hours today, 17 September 2008.

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

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%.

US markets rallied on Tuesday, 16 September 2008, on growing
optimism that US authorities may finance a rescue of insurer
American International Group (AIG). The Dow Jones Industrial
Average surged 141.51 points, or 1.30%, to 11,059.02, the Standard
& Poor's 500 Index rose 20.87 points, or 1.75%, to 1,213.57 and the
Nasdaq Composite index climbed 22.45 points, or 1.03%, to 2,202.36.
The US government announced rescue plan for AIG after trading
hours.

Back home, buying in index pivotals coupled with short covering
after five straight days of fall helped key benchmark indices erase
sharp early losses on Tuesday, 16 September 2008 in highly choppy
session. The BSE 30-share Sensex slipped 12.47 points or 0.09% at
13,518.80 and the S&P CNX Nifty rose 2 points or 0.05%, to 4074.90,
on that day.