RIL tumbles

A sharp fall in Reliance Industries (RIL) pulled the market down in
mid-morning trade led by fall in index heavyweight Reliance
Industries. The BSE Sensex was down 262.85 points or 2.47%. The
barometer index shed close to 570 points from the day's high.
Banking stocks which spurted earlier in the day on possible rate
cuts came off the higher levels.

The slide on the domestic bourses was despite firm Asian stocks
which rose as investors welcomed the end to the uncertainty around
the US presidential election. Key benchmark indices in China,
Japan, Singapore, Hong Kong, and South Korea were up by between
2.34% to 5.85%. But the Taiwan Weighted fell 0.29%.

Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected US president.

At 11:22 IST, the BSE 30-share Sensex was down 262.85 points or
2.47% to 10,365.82. The market had surged earlier in the day
boosted by rally in Asian stocks, Barack Obama's election as the
next US president and expectations that a cut in interest rates by
state-run banks that would result in lower borrowing costs for the
corporates. The early rally was also triggered by a sentiment by
the Commerce and Industry Minister Kamal Nath after trading hours
on Tuesday, 3 November 2008, that the government will further ease
foreign investment rules, including those relating to defence
production.

The Sensex surged 314.29 points at day's high of 10,945.41 in early
trade. The index declined 268 points at the day's low of 10,363.12
in mid-morning trade.

The S&P CNX Nifty was down 55.80 points or 1.78% to 3,086.30.

The BSE Mid-Cap index was up 0.14% at 3,451.10 and the BSE
Small-Cap index was up 0.45% at 4,053.10. Both the indices
outperformed the Sensex.

The market breadth was strong. On BSE, 1,166 shares advanced as
compared to 958 that declined. 54 shares remained unchanged.

India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slumped 8.62% to Rs 1,329.70
after ABN Amro recommended a 'sell' on the stock and cut its target
price by whopping 38% to Rs 1,150 from Rs 1,850 earlier. The scrip
was the biggest loser from the Sensex pack.

Reliance Communications (down 6.19% to Rs 235.40), Bharti Airtel
(down 3.1% to Rs 695.05), Hindalco Industries (down 2.5% to Rs
62.40) were the other major losers from Sensex pack.

Healthcare stocks were mixed following reports the drug regulator
National Pharmaceutical Pricing Authority has issued notices to
Cipla, Ranbaxy Laboratories and Nicholas Piramal among others for
overcharging. Cipla and Ranbaxy Laboratories fell between 0.6% to
2.15% while Glenmark Pharmaceuticals, Dr. Redddy's Laboratories,
Nicholas Piramal HealthCare rose between 0.15% to 3%. The drug
regulator has asked these firms to deposit Rs 1630 crore with the
government exchequer besides explaining the hike.

Most realty stocks extended gains on hopes lower interest rates
will spur demand for residential properties. Realty majors,
Indiabulls Real Estate,Anant Raj Industries, Parsvnath Developers,
DLF jumped by between 2.02% to 12.53%. While, Unitech fell 1.25%.

As per reports public sector banks are likely to cut deposit and
lending rates by 50 to 75 basis points within one week, after the
Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.

PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 1.5% to 2.52%.

Meanwhile, crude oil fell in New York as investors judged
yesterday's 10% gain as excessive on signs of slowing fuel demand
after US auto sales dropped to their lowest in 17 years. Crude oil
for December delivery declined as much as $2.08, or 3 %, to $68.45
a barrel on the New York Mercantile Exchange.

GAIL India gained 2.57% on signing a cooperation agreement with the
Himachal Pradesh state government for extension of the proposed
Dadri-Bawana-Nangal natural gas pipeline to the state.

Auto stocks were up on reports the government may cut petrol and
diesel prices to drum up support with voters ahead of key state
elections later this month. Maruti Suzuki India, Mahindra &
Mahindra, Hero Honda Motors, Tata Motors rose by between 0.15% to
2.31%.

Ashok Leyland was flat at Rs 21.10 on reports of planning to reduce
monthly production target for November 2008 to 1,500 units from the
average 6,800 units it clocked each month in the first six months
of this fiscal.

IT stocks jumped despite strong rupee and also shrugging off
worries the US outsourcing business will be curtailed after Obama
won the US presidential election. India's third largest IT exporter
by sales Satyam Computer Services rose 0.84% even as its American
depository receipt (ADR) fell 0.83% overnight.

India's fourth largest IT exporter by sales Wipro rose 1.48% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
gained 1.22%, as ADR rose 4.84%.

India's largest IT exporter by sales Tata Consultancy Services
jumped 4.86%.

Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.

The Indian rupee strengthened by 1% in opening deals on Wednesday
on expectations the stock market may rise for a sixth successive
session and attract foreign inflows. The partially convertible
rupee was at 47.20/21 per dollar, compared to Tuesday's close of
47.69/71 per dollar. A strong rupee affects the IT companies as
they earn most of their revenues in dollar terms.

Bank stocks came off the day's high even on reports public sector
banks are likely to cut deposit and lending rates by 50 to 75 basis
points within one week. India's largest commercial bank State Bank
of India fell 3.27% to Rs 1,277 off day's high of Rs 1,375 even
after its chairman O P Bhatt said on 4 November 2008 the bank was
likely to cut interest rates by up to 50 basis points.

Indian Bank fell 1.48% after early gains after the bank said
yesterday it will consider cutting its lending and deposit rates by
50-75 basis points this week.

State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.

India's largest private sector bank by net profit ICICI Bank lost
3.08% to Rs 445 off the day's high of Rs 491 even as American
depository receipt (ADR) spurted 7.28% overnight. ICICI Bank's
chief executive K.V. Kamath said on 3 November 2008, the bank will
review interest rates in the next few days.

India's second largest private sector bank by net profit HDFC Bank
rose 0.92% to Rs 1119.90 off the day's high of Rs 1171. The ADR
jumped 7.63% on Tuesday.

India's largest home loan lender by operating income HDFC fell
1.22% to Rs 1,902 off day's high of Rs 1,999.

Aksh Optifibre jumped 3.66% on reports of plans to raise its
Internet protocol television (IPTV) subscriber base to 40,000
across 22 cities in India by end-2008. Currently, it has a 8,000
subscribers in Delhi and 2,000 in Mumbai.

Thermax fell 1.3% on foraying into the South East Asian markets
with an investment of around $22 million. It plans to set up two
green power plants in the Philippines and Indonesia, using miltiple
biomass as feedstock.

Shree Cement surged 3.97% after cement shipments rose 12.81% to
6.25 lakh tonnes in October 2008 over October 2007.

Dalmia Cement (Bharat) rose 0.7% even as October 2008 cement
shipments fell an annual 10.7% to 216,000 tonnes.

Kingfisher Airlines fell 2.86 on reports the of defaulting on lease
rentals to GE Commercial Aviation Services for four A 320
aircrafts.

US stocks had their biggest Election Day rally ever on Tuesday as
investors looked forward to the end of the uncertainty surrounding
the long fight for the White House, while global credit markets
showed more signs of a thaw. The Dow Jones Industrial Average
jumped 305.45 points or 3.28%. The tech-laden Nasdaq Composite
Index surged 53.79 points or 3.12%.