Key benchmark indices extended fall in the mid-morning trade as Asian stocks dropped on persistent questions on the effectiveness of the US bailout package and on continued instability in the global banking sector. The BSE 30-share Sensex was down 289.44 points. The barometer index today fell below the 13,000 mark. Banking and realty stocks edged lower. FMCG stocks rose. ICICI Bank fell more than 9% while Jaiprakash Associates fell more than 6%. The market breadth was very weak as selling was witnessed across the counter.

The US lawmakers agreeing on a $700 billion bank-rescue package and the House of Representatives approving the nuclear deal with India, over the weekend failed to boost the investor sentiments.

Rather, the instability in the banking industry continued to weigh on the investors sentiments in Asia with the Belgian, Dutch and Luxembourg governments forced to rescue financial firm Fortis over the weekend. In addition, reports suggest the British government will take over mortgage lender Bradford & Bingley. Most Asian markets were trading lower today, 29 September 2008. Hong Kong's Hang Seng, Japan's Nikkei, Singapore's Straits Times, South Korea's Seoul Composite fell between 0.52% 2.12%.

Democratic congressional leaders supported on Sunday, 28 September 2008, a massive financial rescue plan proposed by the Bush administration, releasing a draft text trumpeting taxpayer guarantees and caps on executive compensation. The bill will be introduced in the House of Representatives today, 29 September 2008 and then head to the Senate.

Meanwhile, the Indo-US nuclear deal moved into the last lap clearing a major hurdle when the House of Representatives approved a legislation on it that will now go to the Senate before the two countries can implement the civil nuclear agreement.

At 11:20 IST, the BSE 30-share Sensex was down 289.44 points or 2.21% to 12,812.74. The index shed 301.50 points at the day's low of 12,800.68 hit in mid-morning trade. The Sensex edged up 11.35 points at days high of 13,113.53, hit at the onset of the trading session.

The S&P; CNX Nifty was down 69.95 points or 1.76% to 3,915.30.

The BSE Mid-Cap index was down 2.68% at 4,808.24 and the BSE Small-Cap index was down 2.66% at 5,705.64.

The market breadth was weak on BSE with 380 shares advancing as compared to 1,757 that declined. 48 shares remained unchanged.

Indias largest private firm by market capitalization and oil refiner Reliance Industries fell 0.61% to Rs 1,950.

FMCG stocks rose on defensive buying. The BSE FMCG index rose 1.53% to 2,222.57 and the index was the lone gainer from the sectoral indices on BSE. Hindustan Unilever (up 4.28% to Rs 263.75), ITC (up 0.81% to Rs 193.75), REI Agro (up 0.01% to Rs 955) edged higher.

Nestle India rose 0.8% to Rs 1,653. The company has unveiled its capital expenditure plan of Rs 600 crore in 2009, which is double the Rs 300 crore that it is investing in the current year. The investment would go in new research and development, advertising and capacity building, Nestles chairman and managing director, Martial Rolland, said while addressing a press conference on Friday, 26 September 2008.

Banking shares fell. The BSE Bankex fell 3.39% to 6,347.81. ICICI Bank (down 9.27% to Rs 509.40), and State Bank of India Bank (down 3.45% to Rs 1,384.70), HDFC Bank (up 1.81% to Rs 1223.20) edged lower from the frontline banking pack.

Rate sensitive realty stocks declined. The BSE Realty index fell 4.59% to 3,432.04 and was the major loser from the sectoral indices on BSE. Akruti City (down 8.73% to Rs 729.80), Indiabulls Real Estate (down 6.73% to Rs 172.50), Unitech (down 3.74% to Rs 106.90) and DLF (down 3.9% to Rs 354.90) edged lower.

Jaiprakash Associates (down 7.09%to Rs 197.85), Tata Motors (down 5.18% to Rs 353.10), Satyam Computer Services (down 4.02% to Rs 309), Maruti Suzuki India (down 4.01% to Rs 654) edged lower from the Sensex pack.

Ranbaxy Laboratories (up 1.98% to Rs 277.80), Bharat Heavy Electricals (up 0.88% to Rs 1,564.05) edged higher from the Sensex pack.

Indias fifth-largest software exporter by sales HCL Technologies fell 7.02% to Rs 198.40. HCL Technologies fell 7.42% to Rs 197.15. On Friday, 26 September 2008, launched an all-cash offer for UK-based SAP implementation consultancy Axon. The offer trumped an earlier bid by Infosys, India's second largest IT services provider by sales.

HCLs all-cash offer at 650 pence a share is 8.3% higher than the 600-pence offer by Infosys, which has promised a further announcement in due course. Reports suggest that Infosys is expected to disclose its future plans on Axon on Monday, 29 September 2008.

US light crude for November delivery fell $1.09 to $105.85 a barrel today, 29 September 2008 pressured by gains in the US dollar.

US stocks rose on Friday, 26 September 2008. The Dow Jones gained 121.07 points, or 1.10%, to 11,143.13. The S&P; 500 index was up 3.83 points, or 0.32%, to 1,213.01, and the Nasdaq composite index was down 3.23 points, or 0.15%, to 2,183.34.

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