Market tumbles at opening

Weak global cues triggered weak opening of the Indian market. The
BSE 30-share Sensex was down 183.40 points. Asian stocks edged
lower after the proposed $700 billion bailout deal for the US
financial sector ran into unexpected roadblocks. News of the
biggest ever US bank failure compounded the bearish sentiments,
with the US government brokering a last-ditch purchase of thrift
Washington Mutual by JPMorgan

IT and realty stocks led the fall on the domestic bourses in early
trade. All the sectoral indices on BSE were negative.
Infrastructure construction firm Jaiprakash Associates was the top
gainer in the Sensex pack.




Inflation remained steady, the latest data showed. Inflation based
on the wholesale price index rose 12.14% in 12 months to 13
September 2008, unchanged from the previous week's annual rise,
government data released after trading hours on Thursday, 25
September 2008, showed. Inflation for the week ended 19 July 2008
was revised upwards to 12.54% from 11.98%.

Asian market, which opened before Indian market, were negative. Key
benchmark indices in China, Hong Kong, Japan, South Korea,
Singapore and Taiwan were down by between 0.6% to 2.4%.

At 10:20 IST, the BSE 30-share Sensex was down 183.40 points or
1.35% to 13,363.78. The index shed 214.05 points at the day's low
of 13,333.13, hit in early trade. The Sensex fell 60.98 points at
day's high of 13,486.20, hit at the onset of trading session.

The S&P CNX Nifty was down 59.85 points or 1.46% to 4050.70.

The BSE Mid-Cap index was up 0.68% at 5,058.45 and the BSE
Small-Cap index was up 0.16% at 6,040.54.

The market breadth was weak on BSE with 564 shares advancing as
compared to 935 that declined. 53 shares remained unchanged.

Infrastructure construction firm Jaiprakash Associates rose 2.87%
at Rs 127.05.




Hindustan Unilever (up 1.84% at Rs 254.20), and Reliance
Infrastructure (up 0.56% at Rs 882.50), were the other major gainer
in Sensex pack.

TCS (down 3% at Rs 3% at Rs 669.90), ONGC (down 3% at Rs 1039),
Grasim Industries (down 2.97% at Rs 1812), Mahindra & Mahindra
(down 2.46% at Rs 545.05), and Tata Steel (down 2.15% a tRs
474.35), were the major lowers from the Sensex pack.

India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 0.47% at Rs 2015.50.

India's second largest software exporter by sales Infosys
Technologies fell 1.86% at Rs 1477.

India's largest private sector bank by market capitalisation ICICI
Bank rose 2.89% at Rs 578.75.

Private sector lender Axis Bank was the most active stock on BSE.
The stock fell 0.79% at Rs 716 on a turnover of Rs 60.17 crore.




The US Congress struggled to find agreement on modifying the Bush
proposal to attack the housing market crisis. The Bush
administration, last week, proposed a $700 billion financial rescue
package, aimed at staving off the collapse of the US financial
system. Meanwhile, a group of conservative Republican lawmakers
proposed an alternative mortgage insurance plan.

In a major development, JPMorgan Chase acquired the banking assets
of Washington Mutual late on Thursday, 25 September 2008, after the
troubled thrift was seized by federal regulators, marking the
biggest bank failure in the United States and the latest stunning
twist in the ongoing credit crisis.

US stocks surged on Thursday, 25 September 2008, boosted by reports
the US Congress had reached an agreement in principle on the $700
billion plan to buy bad debt from banks. The Dow Jones industrial
average jumped 196.89 points, or 1.82%, at 11,022.06. The Standard
& Poor's 500 Index was up 23.31 points, or 1.97%, at 1,209.18. The
Nasdaq Composite Index rose 30.89 points, or 1.43%, at 2,186.57.

As per provisional data released by the stock exchanges, foreign
funds sold shares worth a net Rs 1050.38 crore on Thursday, 25
September 2008. Domestic funds bought shares worth a net Rs 605.59
crore.




Foreign institutional investors (FIIs) have been pulling out their
investments from India and other emerging markets to shore up
resources to beat the global liquidity crunch. In India, FIIs sold
shares worth a net Rs 7357.20 crore this month (till 24 September
2008). The outflow has reached Rs 35871 crore in calendar year 2008