Fresh selling at higher levels dragged the market lower in mid-afternoon trade. It also experienced bouts of volatility. However the broader based S&P; CNX Nifty index still held positive ground.

Buying in index heavyweights stocks viz. Reliance Industries, ICICI Bank and Larsen & Toubro led the market regain positive zone in afternoon trade. However IT pivotals stayed subdued dampened by sharp fall in American depository receipts (ADRs) on the New York Stock Exchange (NYSE) on Friday, 11 July 2008. The market breadth was weak.

Early gains in European markets, which opened after Indian market, also boosted the sentiment. European stocks surged, boosted by a US plan to rescue embattled mortgage finance companies Fannie Mae and Freddie Mac and by a fresh surge of acquisition activity. Key benchmark indices in UK, France and Germany rose by 1.21% and 1.83%.

But political uncertainty will continue to weigh on the bourses in the near term. The government is holding a two-day special session of parliament on 21 July 2008-22 July 2008 to seek vote of confidence after it was reduced to minority following withdrawal of support by Left parties on 8 July 2008. The government hopes to retain power due to backing from Samajwadi Party, a regional party in Uttar Pradesh.

At 14:27 IST, the 30-share BSE Sensex was down 45.74 points or 0.34% at 13,424.11. The Sensex gained 87.36 points at day's high of 13,557.21 hit in mid-afternoon trade. At the days low of 13,277.98, the Sensex slipped 191.87 points in early trade.

However the broader based S&P; CNX Nifty held firm and was up 22.55 points or 0.56% at 4,071.55

The market breadth recovered sharply from initial weakness. On BSE 1267 shares declined, 1166 that advanced and 66 remained unchanged. In morning session, 853 shares declined, 424 advanced and 24 remained unchanged.

The BSE Mid-Cap index was up 0.38% to 5,385.97 and the BSE Small-Cap index fell 0.26% to 6,696.28

The total turnover on BSE amounted to Rs 3073 crore by 14:30 IST as compared to Rs 2421 crore by 13:30 IST

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

Indias largest state-run oil exploration company in terms of market capitalisation Oil and Natural Gas Corporation (ONGC) galloped 5.86% to Rs 899 on 2.76 lakh shares. It was the top gainer from Sensex pack. The company is reportedly in talks with British firm Imperial Energy Corp to form an alliance which could include it buying an equity interest in the UK-based firm. If ONGC manages to strike a deal with Imperial Energy, it will strengthen the ONGC's overseas presence.

Indias largest private sector firm by market capitalization and oil refiner Reliance Industries rebounded from days low of Rs 1992.35. It was now up 2.45% at Rs 2065.60 on 7.81 lakh shares.

Worlds sixth largest steel producer in terms of annual capacity Tata Steel surged 4.18% to Rs 694.10 on reports the company is looking at acquiring an iron ore mine in Western Australia to supply iron ore to Corus' plants.

NTPC (up 4.11% to Rs 168.50) and Reliance Infrastructure (up 5.08% to Rs 842) edged higher from Sensex pack.

Larsen & Toubro, the countrys largest state-run engineering firm in terms of outstanding order book position advanced 3.49% to Rs 2439.50, after sliding to a low of Rs 2320.20

Indias largest state-run engineering firm in terms of outstanding order book position Bharat Heavy Electricals fell 2.18% to Rs 1488.15 despite reports of the company is looking to acquire a locomotive manufacturing facility in Europe.

India's largest state-run bank by net profit State Bank of India vaulted 3.73% to Rs 1267 after touching a low of Rs 1205 in early trade. The bank is likely to report double-digit net profit growth in the Q1 June 2008, Chairman O.P. Bhatt told media reporters on Friday, 11 July 2008.

India's largest private sector bank by net profit ICICI Bank recovered sharply from days low of 573.25 to gain 1.04% to Rs 597.70. Its American depository receipt (ADR) lost 7.4% on the New York Stock Exchange (NYSE) on Friday, 11 July 2008.

Indias largest pharma company in terms of sales Ranbaxy Laboratories tumbled 9.87% to Rs 479 on 23.50 lakh shares. It was the top loser from Sensex pack. The stock was hammered on reports the US government has levelled serious allegations against the company. The US department of justice (DoJ) has said that there was evidence to suggest that Ranbaxy used active pharmaceutical ingredients (API) from unapproved sources, blended unapproved API with approved API, and used less-than-approved API at its Paonta Sahib (Himachal Pradesh) plant in its drugs, resulting in the sale of subpotent, super- potent or adulterated medicines in the US market.

IT stocks extended Fridays losses after IT bellwether Infosys Technologies said on Friday, 11 July 2008, at the time of announcing Q1 June 2008 results that the business environment was tough. The stock plunged 5.26% to Rs 1588.05, after declining 7.18% on Friday, 11 July 2008.

While announcing results, Infosys revised earnings and revenue guidance upward for the year ending March 2009 (FY 2009). Infosys has forecast 24.4% to 26.6% growth in earnings per share as per Indian GAAP at between Rs 98.79 to Rs 100.51 in FY 2009 over the year ended March 2008 (FY 2008). It has forecast a between 27.5% to 29.5% growth in revenue at between Rs 21278 crore and Rs. 21622 crore in FY 2009 over FY 2008.

TCS (down 2.13% at Rs 782.20), Satyam Computer Services (down 5.75% at Rs 418.90), and Wipro (down 0.36% at Rs 410.80), slipped. The ADRs of Infosys (down 13.30%), Satyam Computer Services (down 9.17%) and Wipro (down 2.82%) slumped on the NYSE on Friday, 11 July 2008.

HDFC (down 2.89% to Rs 1940.50), HDFC Bank (down 2.57% to Rs 1040), and ITC (down 1.01% to Rs 172.50) edged lower from Sensex pack.

Debutante KSK Energy Ventures was trading at Rs 178.80 on BSE, a discount of 25.50% over the initial public offer price of Rs 240. The stock debuted at Rs 220, a discount of 8.33% over the initial public offer (IPO) price. It hit a high of Rs 234.80 and a low of Rs 178.10 so far in the day.

Among the side counters, Winsome Yarns (up 20% to Rs 14.40), Selan Exploration (up 20% to Rs 216.80), Suzler India (up 19.97% to Rs 820), Saurashtra Cement (up 20% to Rs 32.85), and man Aluminium (up 13.33% to Rs 42.50), surged

However SpiceJet (down 12.35% to Rs 28.40), Sparsh BPO (down 9.40% to Rs 71.80), and Aurionpro Solutions (down 8.91% to Rs 305.15), declined.

Tata Sponge Iron rose 3.41% to Rs 226 after the company reported 77.4% rise in net profit to Rs 29.33 crore on 8.8% increase in sales to Rs 101.77 crore in Q1 June 2008 over Q1 June 2007.

Axis Bank fell 1.13% to Rs 662.05 despite posting 88.67% rise in net profit to Rs 330.14 crore on 53.84% rise in total income to Rs 2891.24 crore in Q1 June 2008 over Q1 June 2007. The bank announced the result during market hours today, 14 July 2008.

Most Asian markets, which opened before Indian markets, were trading lower today, 14 July 2008. Key benchmark indices in Hong Kong, South Korea, Japan Taiwan and Singapore were down by between 0.57% and 1.21%. However Chinas Shanghai Composite gained 0.76%

US markets ended volatile session on Friday, 11 July 2008, with the Dow Jones falling below the 11,000 level for the first time since August 2006. Growing concern about the health of Fannie Mae and Freddie Mac send bank shares to an 11-year low. The Dow Jones Industrial Average slumped 128.48 points to 11100.54 and the Nasdaq Composite shed 18.77 points at 2239.08. The Standard & Poor's 500 index dropped 13.90 points to 1,239.49.

India's industrial production rose 3.8% in May 2008, much lower than revised 6.2% growth in April 2008, the government data released on 11 July 2008 showed. Industrial production growth for April 2008 revised downwards to 6.2% from earlier 7%.

The market slumped on Friday, 11 July 2008 as spiraling crude oil prices