Nifty regains 4,000 level

Steady buying demand coupled with short covering after five
straight days of fall triggered a solid intra-day rebound in key
benchmark indices. The BSE 30-share Sensex was down 224.95 points.
Index heavyweight Reliance Industries bounced back from 52-week
low. State Bank of India (SBI) advanced over 2%. The S&P CNX Nifty
regained 4,000 level. However ICICI bank cracked over 9% on high
volumes. Telecom shares slipped in choppy trade.




Mayhem in global markets triggered by fears of the state of the US
financial system weighed on the Indian bourses for the second day
in a row today, 16 September 2008. US investment bank Lehman
Brothers filed for bankruptcy, American insurer AIG struggled for
survival and Merrill Lynch was sold to Bank of America.

US markets collapsed on Monday, 15 September 2008 falling the most
since 11 September 2001 as investors worried about the impact of
the latest twists in the credit crisis on the economy and the
outlook for profits. The Dow Jones Industrial Average plunged
504.48 points, or 4.42%, to 10,917.51, the Nasdaq Composite index
dropped 81.36 points, or 3.60%, to 2,179.91 and the Standard &
Poor's 500 index fell 59 points, or 4.71% to 1,192.70.




European markets which opened after Indian markets were subdued.
Key benchmark indices in UK, Germany and France were down by
between 1.04% and 1.78%. Asian markets were trading weak today, 16
September 2008 as fears of a global financial crisis gripped
investors across Asia. Key benchmark indices in China, Japan, Hong
Kong, Taiwan, Singapore, and South Korea were down by between 1.20%
and 6.10%.

At 14:21 IST, the BSE 30-share Sensex was down 224.95 points or
1.66% to 13,304.47. The Sensex opened with a downward gap of 479.54
at 13,051.73, which is also its day's low so far. At the day's high
of 13,330.99 hit in early afternoon trade, the Sensex lost 200.28
points.

The S&P CNX Nifty was down 57.40 points or 1.42% to 4,015.20. Nifty
recovered from a low of 3919.35. At the day's low, Nifty had lost
153.55.




The market breadth was weak on BSE with 2014 shares declining as
compared to just 484 that rose. 59 remained unchanged.

The total turnover on BSE amounted to Rs 2855 crore by 13:30 IST as
compared to Rs 1788 crore by 12:30 IST

27 shares from the 30-member Sensex pack declined.

Mid-cap banking shares spurted on fresh buying. Allahabad Bank (up
3.91% to Rs 62.45), Bank of Baroda (up 3.63% to Rs 313), Bank of
India (up 4.27% to Rs 286.65), Canara Bank (up 5.29% to Rs 214),
Axis Bank (up 3.46% to Rs 680), surged.

India's largest state run bank in terms of net assets State Bank of
India advanced 2.68% to Rs 1528.80 and was the top gainer from
Sensex pack. As per reports, the bank paid 48% higher advance tax
to Rs 1560 crore in Q2 September 2008 over Q2 September 2007.




However India's largest private sector bank in terms of net profit
ICICI Bank plunged 9.40% to Rs 568.90 on 37.53 lakh shares on
reports the bank may have about $200 million in losses tied to the
credit market turmoil. It was the top loser from Sensex pack.

Tata Motors (up 0.36% to Rs 392), and HDFC Bank (up 0.51% to Rs
1210.50), were the other gainers from Sensex pack.

Telecom pivotals slipped in volatile trade. India's largest
cellular services provider by market capitalisation Bharti Airtel
fell 1.46% to Rs 754.25. The stock oscillated in a band of Rs
728.55 and Rs 773.70

India's second largest cellular services provider by market
capitalisation Reliance Communications fell 2.29% to Rs 360.45. The
stock oscillated in a band of Rs 350 and Rs 363.40




India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 0.21% to Rs
1882.80 on 7.94 lakh shares. The stock rebounded sharply from a
52-week low of Rs 1800 in intra-day trade. Reliance Industries
reportedly paid 5% higher advance tax at Rs 680 crore in Q2
September 2008 over Q2 September 2007.

India's fourth largest software services exporter Satyam Computer
Services slumped 6.44% to Rs 344.20 and was the worst hit among the
IT pivotals. The company said it has bagged a SAP implementation
contract from Oman-based Khimji Ramdas LLC. The company made this
announcement during trading hours on Monday, 15 September 2008.

India's second largest software services exporter Infosys lost
2.88% to Rs 1529, after striking high of Rs 1576 in early trade.




Ranbaxy Laboratories (down 4.14% to Rs 402.10), DLF (down 5.50% to
Rs 408.80), and Jaiprakash Associates (down 6.31% to Rs 138), edged
lower from the Sensex pack.

Among the side counters, Shri Lakshmi Cotsyn (down 20% to Rs
78.30), Phrithvi Information Solutions (down 19.95% to Rs 86.05),
Shalimar Paints (down 17.67% to Rs 286.10), Anant Raj Industries
(down 14.58% to Rs 104), and Epic Energy (down 13.49% to Rs 59),
slumped.