Strong market breadth

Gains in metal and oil & gas pivotals took the key benchmark
indices in the positive terrain in mid-morning trade. However, the
upside was capped as auto, software and banking shares witnessed
selling pressure. Realty shares moved higher. The BSE 30-share
Sensex was up 50.54 points. India's largest state-run oil explorer
Oil & Natural Gas Corporation slipped.

Asian stocks rose after the US government proposed a $700 billion
plan to solve the world financial crisis by rescuing banks from
billions of dollars in risky mortgage debt. Key benchmark indices
in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were
up by between 0.19% to 6.96%.

However, uncertainty about the workings of the government's $700
billion bank bailout drove US stock index futures lower, suggesting
the US market may open lower today, 22 September 2008. The S&P 500
futures were down 9.10 points, the Dow futures were down 99 points
and Nasdaq 100 futures were down 13 points. The drop in stock index
futures came on the heels of Friday's (19 September 2008) massive
rally in stocks worldwide -- the largest ever one-day advance as
measured by market value.

At 11:20 IST, the BSE 30-share Sensex was up 50.54 points or 0.36%
to 14,092.86. The Sensex rose 178.72 points at day's high of
14,221.04, hit in early trade. The index shed 27.05 points at the
day's low of 14,015.27, hit in early trade.

The S&P CNX Nifty was up 13.10 points or 0.31% to 4258.35.

The BSE Mid-Cap index was up 0.95% at 5,278.56 and the BSE
Small-Cap index was down 0.88% at 6,270.63.

The market breadth was positive on BSE with 1351 shares advancing
as compared to 794 that declined. 65 shares remained unchanged.

India's largest state-run oil explorer Oil & Natural Gas
Corporation dropped 1.13% to Rs 1058

India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 1.08% at Rs 2074. The
company began production of crude oil from its KG-D6 block of the
Krishna Godavari basin on 17 September 2008 and the firm plans to
commercially release gas from the well by January 2009. The company
aims to supply at least 40% of the nation's requirement of oil and
gas and become one of the world's largest deep-water developers.
According to reports, the company can technically sell its
Krishna-Godavari (KG) basin gas at a price higher than the
government-discovered price of $4.20 per million British thermal
units (mBtu).

India's largest private sector bank by market capitalisation ICICI
Bank fell 0.79% at Rs 623.15.

Auto shares slipped as oil prices advanced. Hero Honda Motors (down
1.52% at Rs 808.50), Tata Motors (down 0.67% at Rs 420), and Maruti
Suzuki India (down 1.30% at Rs 732), tumbled. The BSE Auto index
was down 0.49% at 3,938.70.

Software shares slipped. Satyam Computer (down 2.53% at Rs 360.75),
TCS (down 0.15% at Rs 764.85), Wipro (down 0.13% at Rs 416.30), and
Infosys Technologies (down 0.36% at Rs 1618), declined. The BSE IT
index was down 0.36% at 3,653.69.

Metal shares were in demand. Gujarat NRE Coke (up 11.19% at Rs
73.05), Sesa Goa (up 6.78% at Rs 116.40), Welspun Gujarat Stahl
Rohren (up 2.40% at Rs 262.30), Jindal Steel (up 1.87% at Rs 1505),
and Tata Steel (up 3.13% at Rs 494.60), advanced. The BSE Metal
index was up 1.86% at 10,220.24.

Realty shares recovered after early decline. Akruti City (up 5.32%
at Rs 957.45), Housing Development & Infrastructure (up 3.77% at Rs
232.40), Unitech (up 3.33% at Rs 130.70), and DLF (up 2.90% at Rs
439.20), rose. The BSE Realty index was up 1.33% at 4,157.14. The
index came off early lows of 4,070.85.

Fashion apparel chain operator Pantaloon Retail India gained 2.23%
to Rs 316.90 after posting 74.24% growth in net profit to Rs 32.53
crore on 33% increase in total income to Rs 1381.44 crore in Q4
June 2008 over Q4 June 2007.

Software firm NIIT Technologies gained 3.35% to Rs 97.30 after the
company said it has secured a global sourcing contract from
American Safety Insurance Services, Inc to provide migration,
configuration and customization support.

According to the US administration's proposal, the federal
government would buy up as much as $700 billion of illiquid
mortgage assets at a deep discount from banks. The Treasury
Department would run the program directly, unlike the savings and
loan crisis of the 1990s when Congress created the Resolution Trust
Company to spearhead a financial bailout. The $700 billion plan,
the most sweeping intervention in the financial markets since the
Great Depression, is aimed at stemming the credit crisis roiling
Wall Street and threatening the global markets.

Back home, the current week will see expiry of September 2008
derivatives contracts. The September 2008 contracts expire on
Thursday, 25 September 2008. Roll over in Nifty futures till
Friday, 19 September 2008, was about 18% whereas Mini Nifty has
seen rollover of about 31% of positions.

As per reports, the overall rainfall in India in the current
monsoon season has till now been the best in the past six years in
terms of distribution though the quantum of rainfall was relatively
higher in 2003, 2006 and 2007. Rains were about 2% below normal
between 1 June 2008 and 17 September 2008.