Market cuts losses

Recovery in pivotals led by index heavyweight Reliance Industries
(RIL) pulled the market off lower level in afternoon trade. The BSE
30-share Sensex was down 334.19 points. TCS and Tata Power regained
positive zone. However, Ranbaxy Laboratories plunged around 6%. The
market breadth was weak. Trading was choppy. Global cues were weak.

Annual inflation rose 12.34% in the year through 23 August 2008,
lower than previous week's 12.40% rise, data released by the
government after trading hours on Thursday, 4 September 2008
showed. Food prices for staples like lentils and vegetables eased
while fuel prices remained flat, the data showed. Inflation,
however, remains far above central bank's target level of 7%
towards the year ending March 2009.




The Nuclear Suppliers Group (NSG) is reportedly inching towards
forging a consensus on clearing a waiver to India for nuclear
commerce, a decision that can take the Indo-US nuclear deal
forward. The United States said on Thursday, 4 September 2008, 45
nations were making headway towards agreement on lifting a ban on
nuclear trade with India after Washington reworked a draft for the
move to ease proliferation fears. The two-day meeting of NSG ends
today, 5 September 2008.

The opposition BJP on Thursday, 4 September 2008, accused Prime
Minister Manmohan Singh of misleading Parliament and the country on
the nuclear deal issue and demanded the resignation of the Manmohan
Singh government. Senior BJP leader Yashwant Sinha said in view of
the gross breach of privilege of both the Houses of Parliament, an
immediate session of Parliament should be convened within the
shortest possible time to enable BJP to move a privilege motion
against the Prime Minister if the UPA did not quit.

The BJP made the demands in the wake of the disclosure of
correspondence between the Bush administration and US Congress that
the Indo-US nuclear pact would be off if India conducted a nuclear
test.

At 13:25 IST, the BSE 30-share Sensex was down 334.19 points or
2.24% to 14,563.47. It opened 330.09 points lower at 14,569.01. At
the day's low of 14,438.59 hit in early afternoon trade, the Sensex
lost 460.51 points. At the day's high of 14,593.93 hit in
mid-morning trade, the Sensex fell 305.17 points.

The S&P CNX Nifty declined 77.75 points or 1.76% to 4,369.55

The market breadth was weak on BSE with 1536 shares declining as
compared to 907 that advanced. 82 remained unchanged.

The total turnover on BSE amounted to Rs 2705 crore by 13:30 IST as
compared to Rs 2022 crore by 12:30 IST.




Among the 30-member Sensex pack, 28 declined.

India's largest software services exporter TCS gained 0.22% to Rs
846 on 1.01 lakh shares. It was the top gainer from the Sensex
pack. The stock recovered from the day's low of Rs 815.

India's second largest private sector power generation firm by
sales Tata Power rose 0.18% to Rs 1090.10, off session's low of Rs
1055.




India's top drug maker by sales, Ranbaxy Laboratories tumbled 6.41%
to Rs 461.90 on 6.71 lakh shares. It was the top loser from Sensex
pack. The Japanese drug maker Daiichi Sankyo's open offer to
acquire an additional 20% stake at Rs 737 a share in the company
ended yesterday, 4 September 2008.

India's largest private sector firm by market capitalization and
oil refiner Reliance Industries (RIL) slumped 3.20% to Rs 2084 on
8.09 lakh shares. The stock moved in a range of Rs 2068 and Rs
2120.

India's top truck maker by sales, Tata Motors lost 2.40% to Rs
418.50. A crucial meeting will be held in Kolkata today, 5
September 2008, between representatives of the West Bengal
government and Trinamool Congress chief Mamata Banerjee to end the
standoff over land acquisition for the company's small car project
at Singur.

Tata Motors Chairman Ratan Tata said on Thursday, the company will
do everything it can to roll out its super-cheap Nano car as close
to the planned October 2008 launch timeline as possible.

India's largest oil exploration company by market capitalisation
ONGC lost 0.41% to Rs 1064.50. As per reports, the company's wholly
owned overseas unit ONGC Videsh is in talks to acquire Canada's
Tanganyika Oil Co for about $1.2-1.5 billion. Tanganyika is listed
on the Stockholm bourse and has production and exploration assets
in Egypt and Syria.

Jaiprakash Associates (down 4.67% to Rs 168.60), HDFC (down 5.04%
to Rs 2299.50), and ICICI Bank (down 3.65% to Rs 692.05), Infosys
Technologies (down 3.26% to Rs 1731), edged lower from the Sensex
pack.




IFGL Refractories rose 1.90% to Rs 51 after the company said on
Friday, 5 September 2008, it has set up a modern facility for
manufacturing bio ceramics, in which orbital implants are also
manufactured. The company made this announcement during trading
hours today, 5 September 2008.

Orbit Corporation surged 3.90% to Rs 317 after the Supreme Court on
Thursday cleared a Maharashtra development control rule allowing
realtors to enjoy floor space index of 3-7 times, allowing them to
build more vertically.

Patel Engineering rose 0.65% to Rs 416.90 on reports the company is
close to acquiring a coal mine in Indonesia for Rs 100 crore.

US crude for October 2008 delivery rose 1 cent to $107.90 a barrel
today, 5 September 2008 on the Nymex.




European markets which opened after Indian markets were subdued in
opening trade. Key benchmark indices in UK, Germany and France were
down by between 0.38% and 0.78%.