Market plunges in opening trade on weak global cues

Key benchmark indices opened with sharp downward gap on weak global
cues. The BSE 30-share Sensex was down 333.54 points. All the 30
Sensex stocks were in the red. The market breadth was weak. Banking
shares slipped. Index heavyweight Reliance Industries shed 3%.
Sterlite Industries, Jaiprakash Associates and Infosys Technologies
lost close to 3% each.

Fears about economic growth and a 3% slump in US stocks on
Thursday, 4 September 2008, sent Asian shares sprawling today, 5
September 2008. Key benchmark indices in Hong Kong, China, Japan,
South Korea, Singapore and Taiwan were down by between 1.28% to
2.85%.

Wall Street suffered its steepest decline in more than two months
on Thursday, 4 September 2008, after weekly government data showed
an unexpected jump in the number of filings for jobless benefits,
souring the mood before Friday's (5 September 2008)'s jobs report
for August 2008, which is expected to show the eighth consecutive
decline, with 75,000 jobs lost.

At 10:25 IST, the BSE 30-share Sensex was down 333.54 points or
2.24% to 14,565.56. It opened 330.09 points lower at 14,569.01 and
slipped to strike an intra-day low of 14,513.44 in early trade. At
the day's low, the Sensex lost 385.66 points. At the day's high of
14,590.61, the Sensex fell 308.49 points in early trade.

The S&P CNX Nifty declined 87.85 points or 1.98% to 4,359.90

The market breadth was weak on BSE with 1028 shares declining as
compared to 433 that advanced. 47 remained unchanged.

The total turnover on BSE amounted to Rs 637 crore.

India's largest copper manufacturer Sterlite Industries lost 3.63%
to Rs 590.85 on 71,786 shares. It was the top loser from Sensex
pack.

Jaiprakash Associates (down 3.25% to Rs 171), Infosys (down 3.04%
to Rs 1735), and Maruti Suzuki India (down 2.85% to Rs 664.40),
edged lower from Sensex pack.

India's largest private sector firm by market capitalization and
oil refiner Reliance Industries (RIL) slumped 3.01% to Rs 2087.90
on 2.39 lakh shares.

Banking shares declined on fresh selling despite softening in
inflation rate for a second week in a row. ICICI Bank (down 2.76%
to Rs 698.40), State Bank of India (down 2.04% to Rs 1504), and
HDFC Bank (down 2.98% to Rs 1265), slipped.

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.

Among the side counters, Sona Koya Steerings (up 16.30% to Rs
20.70), Ceat (up 6.39% to Rs 81.55), and Orbit Corporation (up
6.36% to Rs 324.50), surged

Weak global cues had pulled Sensex down 150.76 points or 1% to
14,899.10, on Thursday, 4 September 2008. As per provisional data
released by the stock exchanges, foreign funds sold shares worth a
net Rs 603.28 crore on Thursday. Domestic funds bought shares worth
a net Rs 431.11 crore.

Meanwhiles, 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.