Key benchmark indices cut losses in late trade led by recovery in banking stocks. Weak global cues triggered a sell-off in the earlier part of the day. The S&P; CNX Nifty slipped below the 4,400 level. Volatility was high throughout the day.

Metal shares were the chief casualty of the day with Sterlite Industries plunging over 11% and Tata Steel sliding 5%. Index heavyweight Reliance Industries dropped little under 3%. The market breadth was weak.

US stocks slumped on Tuesday, 9 September 2008 as financial shares sold off on worries about Lehman Brothers' ability to raise much-needed cash. The Dow Jones industrial average plunged 280.01 points, or 2.43%, to 11,230.73. The S&P; 500 index fell 43.28 points, or 3.41%, to 1,224.51, and the Nasdaq Composite index declined 59.95 points, or 2.64%, to 2,209.81.

European markets which opened after Indian markets were subdued. Key benchmark indices in UK, Germany and France were down by between 0.50% and 1.17%.

Asian markets were mixed today, 10 September 2008. Key benchmark indices in Japan, Hong Kong, Singapore were down by between 0.44% and 2.40%. Indices in China, South Korea, and Taiwan rose between 0.23% and 0.72%.

The BSE 30-share Sensex slipped 243.23 points or 1.63% to 14,657.63, as per provisional closing. It opened 188.23 points lower at 14,717.53. At the day's low of 14,609.83 hit in late trade, the Sensex lost 290.93 points. At the days high of 14,866.32 hit in mid-morning trade, the Sensex fell 34.44 points.

The S&P; CNX Nifty slipped 68.85 points or 1.54% to 4,399.85 as per provisional closing

Reliance Power was down 0.03% to Rs 169.35 on 46.48 lakh shares. The stock replaced Dr Reddys Labs in Nifty index from today. Dr Reddys Labs slipped 1.97% to Rs 567.05.

The market breadth was weak on BSE with 1716 shares declining as compared to 944 that advanced. 77 remained unchanged.

The total turnover on BSE amounted to Rs 5152 crore on BSE as compared to Rs 2885 crore by 14:30 IST.

Among the 30-member Sensex pack, 21 declined while the rest advanced.

Metal stocks were under intense selling pressure. Aluminium and copper maker Sterlite Industries tanked 11.76% to Rs 508 after plunging 7.50% to Rs 575.70 yesterday, 9 September 2008. It was the top loser from the Sensex pack. The Sterlite ADR tumbled 16.23% yesterday, 9 September 2008 on the New York Stock Exchange (NYSE) after the Vedanta group on Tuesday, 9 September 2008 announced a restructuring to simplify its corporate structure into three commodity-focused groups: copper and zinc-lead, aluminium-energy and iron ore.

As per the restructuring scheme, which will be effective from April 2009, Sterlite will demerge its aluminium and energy businesses to Madras Aluminium Company (Malco) to be simultaneously renamed Sterlite Aluminium. Vedanta will transfer its 79.4% equity interest in Konkola Copper Mines Plc (KCM) to Sterlite.

Malco will issue seven shares of Rs 2 each to the shareholders of Sterlite for every four shares of Rs 2 each held by them. Sterlite will issue one share of Rs 2 each to Malco shareholders for every 51 shares of Rs 2 each held by them.

Madras Aluminium Company (Malco) was down 5.72% to Rs 201.95 on 26.87 lakh shares

Worlds sixth largest steel producer by capacity Tata Steel plunged 5.10% to Rs 535.60.

Other metal stocks JSW Steel (down 7.43% to Rs 662), Jindal Steel & Power (down 7.97% to Rs 1656.70), Sesa Goa (down 3.73% to Rs 142), Hindustan Zinc (down 3.57% to Rs 529.75), and Steel Authority of India (down 6.40% to Rs 140.30), slumped.

Indias largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) lost 2.93% to Rs 2080 on 9.70 lakh shares. The stock came off its days high of Rs 2135 hit in early trade. As per reports, the Prime Ministers Office (PMO) may recommend levy of export tax or even ban petroleum product exports from Reliance's export oriented refineries in Jamnagar.

Banking shares staged a comeback in late trade. ICICI Bank (down 1.52% to Rs 702, off days low of Rs 686.60), and HDFC Bank (down 0.62% to Rs 1285.05, off days low of Rs 1250.10), slipped. Indias largest state run bank in terms of net assets State Bank of India rose 0.35% to Rs 1566 after sliding to a low of Rs 1534.35

Capital goods heavyweights slipped. Indias largest power equipment maker by sales, Bharat Heavy Electricals declined 1.95% to Rs 1712.90. The company on Tuesday, 9 September 2008, said it won a contract worth Rs 2,200 crore for setting up a combined cycle power plant in Tripura on turnkey basis.

Indias largest engineering & construction firm by outstanding order book position Larsen & Toubro fell 0.97% to Rs 2710. Larsen & Tobro said on Wednesday it had received an order worth $160 million from Brazil's Petrobras

Telecom pivotals were also subdued. Indias second largest cellular services provider in terms of market capitalisation Reliance Communications (RCom) slipped 0.68% to Rs 402.50. As per recent reports, RComs subsidiary Reliance Big Entertainment has acquired a majority stake in the US-based cricket webcasting portal, Willow TV, for an undisclosed amount.

Bharti Airtel, the countrys largest cellular services provider in terms of market capitalisation declined 3.04% to Rs 811

Reliance Infrastructure (down 3.17% to Rs 1037), Tata Power (down 3.54% to Rs 1048), and Jaiprakash Associates (down 2.44% to Rs 167.60), edged lower from Sensex pack.

North Indias largest cement maker by sales ACC gained 1.30% to Rs 604.45 and was the top gainer from Sensex pack.

Indias second largest software services exporter Infosys Technologies rose 0.88% to Rs 1762.35. The stock came off days low of Rs 1726.

Real estate heavyweights slipped. DLF, the countrys largest realty company by market capitalisation slipped 0.19% to Rs 502.90. On Monday, 8 September 2008, the company received a clearance from the Securities and Exchange Board of India (Sebi) to go ahead with a buyback plan. In July 2008, DLF had announced its Rs 1,100-crore plan to buy back shares from existing shareholders at a price not exceeding Rs 600 a share.

Unitech, the countrys second largest realty company by market capitalisation, fell 2.55% to Rs 158.45.

Ranbaxy Laboratories, Indias top drug maker by sales fell 0.32% to Rs 455. The Japanese drug maker Daiichi Sankyos open offer to acquire an additional 20% stake at Rs 737 a share in the company ended on 4 September 2008.

IT pivotals were mixed despite the rupee sliding past the 45 mark per dollar today, 10 September 2008. Indias second largest software services exporter Infosys Technologies rose 0.68% to Rs 1758.95. The stock came off days low of Rs 1726.

Other IT pivotals Satyam Computer Services (down 0.79% to Rs 421.65), Wipro (down 0.24% to Rs 433.10), and TCS (down 1.98% to Rs 849.05), edged lower.

IT firms derive a lion's share of revenue by way of exports and therefore fall in the domestic currency benefits the IT sector.

Wipro (up 0.86% to Rs 437.90), Grasim (up 0.52% to Rs 2040), and Hindalco Industries (up 0.91% to Rs 126.90), edged higher from Sensex pack.

The central bank governor Duvvuri Subbarao said on Tuesday, 9 September 2008 that India's inflation is showing signs of moderating but it is too early to conclude whether this is a trend and signaled that he would wait and see before taking any fresh steps.

US crude for October 2008 delivery rose 52 cents at $103.78 a barrel today, 10 September 2008, after the Organisation of Petroleum Exporting Countries (Opec) surprised traders with a deal to effectively cut production by just over 500,000 barrels per day (bpd). US crude for October 2008 delivery had touched a 5-month low of $103.72 yesterday, 9 September 2008.

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