Sensex off 48% in calendar 2008 - Post Market Report:10/10/2008

There is fear and panic on the stock markets. The bourses suffered
heavy losses today on the back of global sell-off and on data
showing dismal industrial production growth in August 2008. The BSE
30-share Sensex lost 800.51 points. IT stocks suffered on downward
revision in guidance in dollar terms by IT bellwether Infosys
Technologies.

Banking stocks were volatile reacting to a slew of news such as cut
in cash reserve rate, slowdown in industrial production and fall in
inflation. Reliance Communications declined 21.02%, Reliance
Infrastructure and ICICI Bank lost more than 19% each and
Jaiprakash Associates shed 16.27%.

Securities & Exchange Board of India (Sebi) chief C B Bhave today
said there was no unusual activity in the stock market. He further
said there has been no shorting by institutions in cash markets.

Inflation based on the whole price index rose 11.8% in 12-months to
27 September 2008, lower than previous week's 11.99% rise, data
released by the government during trading hours today, showed.

Stocks fell across the globe despite worldwide central bank
measures to stave off a crisis. Bank bailouts, liquidity injections
and interest rate cuts across the world have failed to quell
investor anxiety with Asian stocks tumbling today, following
overnight setback in US stocks.

Back home, the Reserve Bank of India (RBI) toady cut the cash
Reserve Ratio (CRR) second time in the week. The central bank cut
CRR by 100 basis points after 50 basis point cut earlier in the
week.

Trading in US index futures suggested the Dow would fall 227 points
at the opening bell.

The BSE 30-share Sensex ended down 800.51 points or 7.07% to
10,527.86. The index plunged 1,088.50 points at the day's low of
10,239.76 at the onset of the trading session, its lowest level
since 24 July 2006. The Sensex fell 424.33 points at day's high of
10,904.13, in early trade.

The S&P CNX Nifty was down 233.70 points or 6.65% to 3,279.95.
Nifty hit a low of 3,198.95 in early trade, its lowest level since
9 August 2006.

From the recent high of 13,055.67 on 1 October 2008, the Sensex has
lost 2,527.81 points or 19.36%. The barometer index Sensex is down
9,759.13 points or 48.1% in the calendar year 2008 so far from its
close of 20,286.99 on 31 December 2007. It is 10,678.91 points or
50.35% below its all-time high of 21,206.77 struck on 10 January
2008.

BSE clocked a turnover of Rs 5,073 crore today as compared to a
turnover of Rs 5,135.12 crore on 8 October 2008.

Nifty October 2008 futures were at 3295, at a premium of 15.05
points as compared to spot closing of 3279.95. NSE's futures &
options (F&O) segment turnover was Rs 48,279.24 crore, which was
lower than Rs 57,666.95 crore on Wednesday, 8 October 2008.

The BSE Mid-Cap index ended down 8.34% at 3,676. The BSE Small-Cap
index was down 7.31% at 4,355.45. Both the indices underperformed
Sensex.

The market breadth was extremely weak. On BSE, 382 shares advanced
as compared to 2,189 that declined. 48 shares remained unchanged.

All the sectoral indices on BSE were in the red. BSE Realty index
(down 11.3% to 2,523.07), BSE Consumer Durables index (down 10.11%
to 2,139.50), BSE Metal index (down 9.25% to 6,542.27), BSE Capital
Goods index (down 9.22% to 7,983.04), BSE Power index (down 8.8% to
1,855.04), BSE Bankex (down 7.84% to 5,319.50) underperformed
Sensex.

BSE HealthCare index (down 3.92% to 3,213.28), BSE IT index (down
4.33% to 2,584.25), BSE FMCG index (down 4.46% to 1,860.56), BSE
PSU index (down 4.47% to 5,535.99), BSE Auto index (down 5.43% to
3,255.68), BSE Oil & Gas index (down 6.72% to 7,272.31), BSE Teck
index (down 6.74% to 2,112.03), outperformed Sensex.

Among the major sensex losers were, Jaiprakash Associates (down
16.27% to Rs 76.15), Reliance Infrastructure (down 19.25% to Rs
515.30) and Reliance Communications (down 21.02% to Rs 237.40)
slumped.

India's largest private sector company by market capitalization and
oil refiner Reliance Industries slumped 7.43% to Rs 1,527. The
stock recovered from the session's low of Rs 1,480.

India's largest drug maker by sales Ranbaxy Laboaratories spurted
4.71% to Rs 292.40 after the US government withdrew a motion
against Ranbaxy Laboratories after the drugmaker submitted a
comprehensive set of audit documents to the authorities.

India's biggest private sector bank by net profit ICICI Bank lost
19.71% to Rs 364.10. The stock came off session's low of Rs 326.70.
India's second-largest bank, has very small exposure to the global
financial crisis and there should be no concerns about liquidity,
its joint managing director Chanda Kochhar said. Her comments came
after the bank's stock fell as much as 28% today as panic-stricken
investors dumped the shares in a weak market.

India's second biggest private sector bank by market capitalisation
HDFC Bank was down 5.35% at Rs 1,046.35, off the session's low of
Rs 975.55.

India's largest state-run lender by market capitalisation State
Bank of India rose 2.27% to Rs 1,352.16, off a low of Rs 1181.15.

IT stocks recovered after earlier fall on Infosys's weak outlook.
India's second largest IT exporter by sales Infosys fell 2.2% to Rs
1,226.70. The stock recovered from the session's low of Rs 1,040.
Infosys said it has revised the US dollar guidance downwards to
reflect the current economic situation and the drastic depreciation
of major global currencies against the US dollar.

Infosys expects earnings per American depository share at $2.23 for
the year ending March 2009, a growth of 12.6%. At the time of Q1
June 2008 results, the company had forecast earnings per American
depository share at $2.31 to $2.35 for the year ending March 2009,
a growth of 16.7% to 18.7%.

Infosys consolidated net profit rose 9.9% to Rs 1432 crore on 11.6%
growth in sales to Rs 5418 crore in Q2 September 2008 over Q1 June
2008. The company announced the results before trading hours today,
10 October 2008.

Tata Consultancy Services, Wipro and Satyam Computer Services
tumbled between 4.32% to 6.69%.

The Indian rupee fell to a record low past 49.07 per dollar today
as the spreading global financial crisis hurt sentiment in Asian
stock markets, leading to concerns of a large outflow of foreign
funds from India. IT exporters benefit from the weaker rupee as
they derive most of their revenues in dollars.

India's largest steel maker by sales Tata Steel slumped 14.49% to
Rs 287.50. ArcelorMittal SA and Tata Steel have reportedly shown
interest in mining coal in collaboration with Coal India from the
latter's 18 abandoned underground mines.

India's largest aluminum maker by sales Hindalco Industries slumped
11.18% to Rs 80.65 even as the company said IGH Holdings, a
promoter of the company has acquired 8.94 lakh shares or 0.05% of
equity capital of the company by way of open markets purchases.

Tata Power Company declined 3.72% to Rs 774.70. The company is
reportedly exploring the option of raising its stake in Indonesia's
Bumi Resources Tbk, the world's second largest coal company, after
a sharp erosion in the value of the shares pledged by Bumi's parent
firm, Bakrie & Brothers, with various lenders.

ICICI Bank clocked the highest volume of 1.16 crore on BSE.
Reliance Natural Resources (94.27 lakh shares), Apollo Tyres (85.85
lakh shares), IFCI (85.41 lakh shares) and Jaiprakash Associates
(83.93 lakh shares) were the other volume toppers in that order.

ICICI Bank clocked the highest turnover of Rs 428.25 crore on BSE.
Reliance Industries (Rs 325.90 crore), Bharti Airtel (Rs 283.21
crore), Reliance Capital (Rs 230.99 crore), State Bank of India (Rs
186.57 crore) were other turnover toppers in that order.

Sintex Industries dropped 13.85% to Rs 195.70, even as the company
reported 62.54% growth in net profit to Rs 68.24 crore in Q2
September 2008 over Q2 September 2007.

Era Infra Engineering slipped 7.24% to Rs 75.55, even as the
company said its joint venture company has bagged a contract from
Airport Authority of India for construction of a new terminal at
Devi Ahilya Bai Holkar Airport, Indore

Aurobindo Pharma declined 7.56% to Rs 195, even as the company said
it has received US Food & Drug Administration approval to
manufacture and market Cyclobenzaprine hydrochloride tablets in
multiple strengths.

Cairn India plunged 11.38% to Rs 151.40, on reports the Rajasthan
government is yet to grant the crucial Right of Use (ROU) to Cairn
India for the part of the pipeline that will pass through the
state.

Ashok Leyland tumbled 8.01% to Rs 22.40 at 11:41 IST on BSE, after
the company reported 14.57% fall in total sales to 6,186 units in
September 2008 over September 2007.

JSW Steel rose 1.42% to Rs 296.80, having recovered from a 52-week
low of Rs 244, after the company posted 14% growth in net crude
steel production to 10.01 lakh tonnes in Q2 September 2008 over Q2
September 2007.

Biocon slipped 2.44% to Rs 134.15, even as the company said on
Friday, 10 October 2008, its joint venture company NeoBiocon has
launched Arbaxane in United Arab Emirates for the treatment of
breast cancer.

India's industrial production rose at a dismal 1.3% in August 2008
compared to a 10.9% growth in August 2007. Manufacturing grew a
poor 1.1% in August 2008 versus 10.7% growth in August 2007.
Consumer durables production rose 5.1% in August 2008 verses 6.2%
growth in August 2007. Capital goods prodcution rose 2.3% in August
2008 verses 14.7% growth in August 2007. Meanwhile, industrial
production growth for July 2008 was revised upwards to 7.4% from
7.1%.

European markets which opened after Indian market were sharply
lower. France's CAC 40, Germany's DAX and UK's FTSE 100 were down
between 7.49% to 8.41%.

Overnight, US stocks slumped more than 7% on fears that credit
markets would stay frozen, paralysing the world's financial system
and slowing economies to a standstill.

US light crude for November delivery fell $4.16, or 4.8%, to $82.43
a barrel today, 10 October 2008, just above its earlier low of
$82.00, in its biggest two-week decline since the start of the Iraq
war in 2003. Oil slipped on fears that market turmoil will send
demand for fuel slumping.

The Indonesian stock exchange suspended trading for a third day,
and exchanges in Bangkok and Vienna halted trading after shares
fell more than 10 %, triggering circuit-breaker rules.

In Moscow, the Russian Duma, or Parliament, approved a financial
sector bailout package valued at more than $80 billion. Trading on
Russian stock exchanges was suspended until further notice.