Market recovers after weak start

Key benchmark indices opened weak mirroring carnage in global
markets triggered by US lawmakers voting aganist the $700 billion
financial rescue plan of the US government. The market, however,
staged a strong rebound from lower level. The BSE 30-share Sensex
was down 134.06 points. Sensex came off from a 2-year low and Nifty
recovered from 17-month low.

IT stocks slumped. Jaiprakash Associates and Tata Steel were down
more than 5% each. Reliance Communications and Tata Power Company
down more than 4% each. ICICI Bank rose snapping yesterday's sharp
fall. Asian markets which opened before Indian market were weak.


Meanwhile, global central banks on Tuesday, 30 September 2008, more
than doubled the amount of dollar funding to $620 billion, but the
move showed no signs of thawing the freeze in money markets where
banks are hoarding cash and bracing for more trouble ahead in the
deepening year-long credit crisis.

At 10:18 IST, the BSE 30-share Sensex was down 134.06 points or
1.06% to 12,460.22. The index shed 442.2 points at the day's low of
12,153.55, hit in early trade, its lowest level in two years. The
Sensex edged down 42.2 points at day's high of 15,523.49, in early
trade

The S&P CNX Nifty was down 32.10 points or 0.83% to 3,817.95. Nifty
hit a low of 3,715.05 in early trade, its lowest level in 17
months.

The BSE Mid-Cap index was down 3.2% at 4,577.98 and the BSE
Small-Cap index was down 3.45% at 5,361.36.

The market breadth was very weak on BSE with 167 shares advancing
as compared to 1,204 that declined. 21 shares remained unchanged.

India's largest privates sector bank by market capitalization and
oil refiner Reliance Industries fell 1.24% to Rs 1,909.

India's largest private sector bank in terms of net profit ICICI
Bank rose 2.26% to Rs 504.45. The stock had slumped 12.11% to Rs
493.30 yesterday despite the bank clarifying that 98% of ICICI Bank
UK PLC's non-India investment book is rated investment grade and
above. ICICI Bank UK PLC has zero exposure to US subprime-credit,
it said.

ONGC (up 1.14% to Rs 1,035), State Bank of India (up 0.31% to Rs
1,409.30), HDFC (up 1.34% to Rs 2,060.25), Reliance Infrastructure
(up 0.45% to Rs 797.50) and Mahindra & Mahindra (up 0.59% to Rs
505) edged higher from the Sensex pack.

Jaiprakash Associates (down 5.67% to Rs 100.65), Tata Steel (down
5.03% to Rs 422.95), Reliance Communications (down 4.32% to Rs
312.20), Tata Power Company (down 4.38% to Rs 877) edged lower from
the Sensex pack.

IT stocks slumped. Infosys (down 3.38% to Rs 1,344.90), Satyam
Computer Services (down 4.65% to Rs 278.50), Tata Consultancy
Services (down 3.66% to Rs 594) and Wipro (down 4.37% to Rs 328.10)
edged lower.