RIL at 52-week low

Key benchmark indices extended losses in mid-morning trade on weak
Asian stocks. Sensex hit its lowest level in more than two years
while Nifty hits 1-½ year low. Sensex was down 457.83 points.
Consumer durables, capital goods and realty stocks plummeted.
Jaiprakash Associates and Tata Power Company fell more than 10%
each. Sterlite Industries was down close to 10%. Reliance
Industries (RIL) hits 52 week low. The market breadth was weak as
selling was witnessed across the board.




The financial crisis spread further to Europe and doubts persisted
about the effectiveness of the US administration's $700 billion US
financial sector bailout plan. The uncertainty over the nuclear
deal with the United States persisted as Condoleezza Rice, US
secretary of state, left New Delhi at the weekend without signing
the US-India nuclear deal. The domestic bourses also ignored
reports that the market regulator Securities & Exchange Board of
India (Sebi) may relax norms of participatory notes. The market
also ignored fall in inflation and further fall in oil & commodity
prices.

At 11:21 IST, the BSE 30-share Sensex was down 457.83 points or
3.65% to 12,068.95. The index shed 472.93 points at the day's low
of 12,053.39, hit in mid-morning trade, its lowest level since 20
September 2006. The Sensex fell 241.83 points at day's high of
12,284.49, in early trade.

The S&P CNX Nifty was down 139.40 points or 3.65% to 3,678.90.
Nifty hit a low of 3,671.05, its lowest level since 3 April 2007.

The BSE Mid-Cap index was down 3.93% at 4,493.83 and the BSE
Small-Cap index was down 3.59% at 5,269.31.

The market breadth was weak on BSE with 280 shares advancing as
compared to 1,844 that declined. 36 shares remained unchanged.




India's largest private sector company by market capitalization and
oil refiner Reliance Industries fell 2.24% to Rs 1,720.85. The
stock hit a 52-week low of Rs 1,703. The promoters of Reliance
Industries converted their 12 crore warrants into an equal number
of shares. Post-transaction, the promoter group holds 49% stake in
the company, with 52% voting rights. This involves an infusion of
around Rs 15,142 crore into the company. The shares have a lock-in
period of three years.

Reliance Industries is also reportedly mulling the merger of its
different formats -- Reliance Hypermart, Reliance Super and
Reliance Fresh -- to make its retail arm more efficient.

Spice Communications (down 14.65% to Rs 56.50), GVK Power
Infrastrucutre (down 13.86% to Rs 20.20) and Aban Offshore (down
11.11% to Rs 1,556) were the major losers from BSE's A group.

Consumer durables stocks declined. BSE Consumer Durables index was
down 5.66% to 2,724.47. Gitanjali Gems (down 7.61% to Rs 172.95),
Blue Star (down 7.21% to Rs 259.95) and Videocon Industries (down
5.92% to Rs 194) edged lower.

Capital goods stocks declined. India's largest electric equipment
maker by sales Bharat Heavy Electricals declined 4.76% to Rs 1,492.
Bharat Heavy Electricals and Nuclear Power Corporation of India are
reportedly in talks with foreign firms Siemens, Alstom and GE for a
third partner in their planned joint venture to set up nuclear
power projects in India.




Praj Industries (down 8.23% to Rs 106), Larsen & Toubro (down 4.29%
to Rs 1,108.40), and Suzlon Energy (down 4.68% to Rs 140.55) edged
lower.

Realty stocks declined. Phoenix Mills (down 13.26% to Rs 120),
Indiabulls Real Estate (down 3.58% to Rs 154.80), Unitech (down
7.98% to Rs 103.20) and DLF (down 8.72% to Rs 307.05) edged lower.

Jaiprakash Associates (down 10.77% to Rs 103.60), Tata Power
Company (down 10.41% to Rs 796), Sterlite Industries (down 9.79% to
Rs 357), Tata Steel (down 8.61% to Rs 359.90), Relaince
Communications (down 6.39% to Rs 311.40), edged lower from the
Sensex pack.

Asian stocks fell today, 6 October 2008, led by shares of
exporters, after a hectic weekend in Europe as the financial crisis
gathered steam there, knocking the euro to the lowest in a year.
Fears that damage from dysfunctional financial systems in developed
economies would almost certainly push them closer to recessions,
weighed on Asian stocks. Key benchmark indices in Hong Kong, China,
Japan, South Korea, Singapore and Taiwan were down by between 3.35%
to 4.75%.

Germany gave blanket bank deposit guarantee on Sunday, 5 October
2008, to prevent panic as officials clinched deals to rescue
Germany's Hypo Real Estate -- after an initial bailout failed --
and recapitalize two other European banks.




US stocks declined in volatile trade on Friday, 3 October 2008, on
concerns whether the $700 billion rescue plan, which was approved
by the US Congress would be quickly implemented and whether it
would be enough to shore up the economy. The Dow Jones Industrial
Average slid 157.47 points or 1.5% at 10,325.38. The tech laden
Nasdaq Composite index shed 29.33 points or 1.48% at 1,947.39.

The market regulator Securities & Exchange Board of India (Sebi) is
expected to review restrictions on issue of participatory notes
(P-Notes) at a board meeting today, 6 October 2008. Reports suggest
that Sebi may ease restrictions on P-Notes. However, the Reserve
bank of India has always been against allowing investments through
P- Notes. P-Notes are derivative instruments issued by foreign
institutional investors (FIIs) to other overseas investors seeking
to invest in Indian securities, but are not registered with the
stock market regulator Securities & Exchange Board of India (Sebi)
either out of choice or regulatory issues.

With the end of third quarter of the calendar year 2008 on Tuesday,
30 September 2008, hedge fund are bracing for heavy redemption amid
US financial sector crisis which has already spread to Europe.
Investors in hedge funds are usually allowed to exit funds only on
the final day of the financial quarter. Large-scale investor
redemption in hedge funds may trigger further selling by foreign
funds in India. Hedge funds mainly operate through the
participatory notes route in India. However, there is no data
available on the quantum of hedge funds' investment in India.

The next major trigger for the market is Q2 September 2008 results.
IT bellwether Infosys kickstarts the reporting season on 10 October
2008.




Oil prices fell around $2 to just below $92 a barrel dragging down
prices of metals and grains.

Last-minute administrative hitches forced Condoleezza Rice, US
secretary of state, to leave New Delhi at the weekend without
signing the US-India nuclear deal to end more than three decades of
isolation for India's nuclear programme. The deal is now expected
to be signed by US president George Bush on Wednesday, 8 October
2008. Cautious Indian negotiators have been keen for Bush to sign
the deal into US law and to publish a presidential statement before
signing the agreement themselves.

The agreement allows US companies to provide India with technology
for its civilian nuclear programme, ending an embargo in place
since India tested a nuclear weapon in 1974. It also gives India
international status as an acceptable nuclear power, even though it
is not a signatory to the Nuclear Non-proliferation Treaty.

Inflation based on the wholesale price index rose 11.99% in 12
months to 20 September 2008, below the previous week's annual rise
of 12.14%, government data released after trading hours on Friday,
3 October 2008, showed. Inflation for the week ended 26 July 2008
was revised upwards to 12.53% from 12.01%.