Weak opening in European markets

Weak opening in European markets pulled the key indices sharply
lower in afternoon trade. The 30-share BSE Sensex was down 220.08
points. Index heavyweight Reliance Industries held firm in positive
territory, while Ranbaxy Laboratories slipped further. Selling was
also visible in the mid-cap and small-cap counters.

European markets opened lower. Key indices in UK, France and
Germany were down 0.56% to 1.41%. Asian markets, which opened
before Indian markets, were mixed. Key indices in China, Hong Kong
and Singapore were down by 1.56% to 3.34%. However, key indices in
Taiwan and South Korea were up by 1.17% to 1.44%. Japanese
financial markets were closed today for Autumnal Equinox Day, a
national holiday.




At 13:20 IST, the BSE 30-share Sensex was down 220.08 points or
1.57% to 13,774.88. The index shed 273.54 points at the day's low
of 13,721.42, hit in the onset of trading session. The Sensex fell
16.7 points at day's high of 13,978.26, hit in mid-morning.

The S&P CNX Nifty was down 50.35 points or 1.19% to 4172.70.

The BSE Mid-Cap index was down 1.23% at 5,156.67 and the BSE
Small-Cap index was down 0.86% at 6,140.93.

The market breadth was weak on BSE with 761 shares advancing as
compared to 1672 that declined. 65 shares remained unchanged.

India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) rose 1.32% at Rs 2063. The
stock came off session's low of Rs 2,000. Reliance Industries (RIL)
began production of crude oil at KG-D6 block of the Krishna
Godavari basin on 17 September 2008, the company said on 22
September 2008. RIL holds 90% participating interest in the block
while the balance is being held by Niko Resources.




India's largest drug maker by sales Ranbaxy Laboratories declined
10.74% at Rs 310 on reports the Canadian drug regulator, Health
Canada, issued a notice to Ranbaxy saying it will be particularly
cautious about drug marketing applications from Ranbaxy after the
US drug regulator blocked the sale of more than 30 generic
medicines made in two factories by the company. The stock had
declined 2.70% in the previous session.

India's largest aluminium producer Hindalco Industries fell 0.64%
at 109.20 after hitting a 52-week low of Rs 106.20 on BSE. The
company's Rs 5,050 crore rights share offering for subscription
Monday, 22 September 2008. The sale in a ratio of three shares for
every seven held at Rs 96 a share will close on 10 October 2008.
The company aims to use the funds to repay a bridge loan it had
taken to buy Canada's Novelis in 2007.

Realty shares tumbled. DLF (down 5.35% at Rs 398.40), Indiabulls
Real Estate (down 4.82% at Rs 214.25), Housing Development &
Infrastructure (down 4.04% at Rs 213.90), and Unitech (down 3.07%
at Rs 124.55), slipped. The BSE Realty index was down 3.35% at
3,958.45.




Banking shares languished in neagtive terrain. ICICI Bank (down
3.46% at Rs 612.50), State Bank of India (down 3.11% at Rs 1,518),
and HDFC Bank (down 1.27% at Rs 1,281.15), tumbled. The BSE Bankex
was down 2.58% at 6,919.19.

Among the side counters, Deccan Chronicle Holdings (down 10% at Rs
105.50), Sintex Industries (down 7.21% at Rs 285.15), Rolta
Industries (down 6.99% at Rs 267.95), and Pantaloon Retail India
(down 5.65% at Rs 286.50), tumbled.