Key benchmark indices opened on a positive note on fall in inflation for a third week in a row. But the market soon dipped into red due to heavy selling in IT stocks. The BSE 30-share Sensex was down 133.95 points. Infosys fell more than 5%. The market breadth was positive. Asian markets which opened before Indian markets were in green.

The wholesale price index-based inflation rose 12.10% in the week ended 30 August 2008, below the previous weeks annual rise of 12.34%, government data released after market hours on Thursday, 11 September 2008 showed. The annual inflation rate was 3.72% during the corresponding week of the previous year.

The government will today, 12 September 2008, release the industrial production data for July 2008. The data is expected at about 12:00 IST.

At 10:23 IST, the BSE 30-share Sensex was down 133.95 points or 0.94% to 14,190.34. At the days low of 14,178.22 hit in early trade Sensex fell 146.07 points. At the days high of 14,433.20 hit in early trade, the Sensex rose 108.91 points.

The S&P; CNX Nifty slipped 14.80 points or 0.34% to 4,275.50.

The market breadth was positive on BSE with 921 shares advancing as compared to 547 that declined. 62 remained unchanged.

Among the 30-member Sensex pack, 17 rose while the rest declined.

The BSE Mid-Cap index fell 0.06% to 5,643.94 and BSE Small-Cap index rose 0.4% to 6,846.33.

Indias largest private sector firm in terms of market capitalization and oil refiner Reliance Industries fell 0.56% to Rs 1,987.40.

IT stocks dropped on overnight fall in their American depository receipts (ADRs). Infosys (down 5.26% to Rs 1,657), Satyam Computer Services (down 2.64% to Rs 410.05), Wipro (down 1.59% to Rs 420.10) edged lower. Indias largest IT exporter by sales Tata Consultancy Services rose 0.27% to Rs 838.

Infosys ADR fell 5.13%, Wipro ADR lost 4.65% and Satyam Computer ADR shed 2.65% yesterday, 11 September 2008.

Maruti Suzuki India (up 2.11% to Rs 693.05), Bharat Heavy Electricals (up 1.47% to Rs 1,690.70), Tata Power Company (up 1.17% to Rs 1,022.10) edged higher from the Sensex pack.

ICICI Bank (down 2.13% to Rs 671.80), Sterlite Industries (down 1.68% to Rs 494.30) and Grasim Industries (down 1.49% to Rs 1,991) edged lower from the Sensex pack.

Indias largest telecom services provider by sales Bharti Airtel fell 0.68% to Rs 770.90. The company added 2.7 million users in the month of August 2008 taking its total subscriber base to 74.8 million. Idea Cellular added 1 million users to increase its total user base to 29 million.

GSM-based cellular services firm added 6.3 million subscribers in August 2008, compared to 6.7 million they added in July 2008 (excluding figures of Reliance Communications). This has taken the total GSM user base to 225 million.

Indias largest tractor maker by sales Mahindra & Mahindra rose 0.99% to Rs 568.85. The comopany said on Thursday it has decided to transfer the logistics business to Mahindra Logistics, a wholly owned subsidiary of the company for a consideration of Rs 32 crore.

Ramco Systems rose 1.63% to Rs 115.25. The company on Thursday, 11 September 2008, said it has altered terms of a previously announced rights issue. It will offer rights shares in the ratio of 1:1 priced at Rs 85 per share. The company will raise up to Rs 130.55 crore from the rights issue. The company has also decided to issue detachable warrants for the shares allotted under the rights issue. The terms and conditions of the rights issue will be finalized in due course. Earlier on 23 July 2008, the company had announced a 3:2 rights issue priced at Rs 75 per share.

National Aluminium Company (Nalco) rose 1.89% to Rs 393.50. The company has reportedly cut aluminium prices by Rs4,000 per tonne to Rs1,36,000 a tonne, following a correction in aluminum price on the London Metal Exchange over the past few weeks.

Tata Communications rose 1.71% to Rs 445.75. The company on Thursday, 11 September 2008, announced the launch of a new Global VPN Extended Access Service (EAS). This new cost-effective solution extends VPN access to customer sites that do not require dedicated links as well as those located in hard-to-reach geographies. EAS complements

Kesar Enterprises was flat at Rs 75. The company said on Thursday, its board will meet on 19 September 2008 to consider a proposal of restructuring of the business of the company including demerger.

US crude for October 2008 delivery rose 45 cents to $101.37 a barrel today, 12 September 2008 as the markets kept a watchful eye on the path of Hurricane Ike that could disrupt refineries and production in the United States for weeks. It lost $1.71 a barrel on Thursday, 11 September 2008 after falling to $100.10, its lowest level in 5-month in intra-day trade.

Asian markets were trading higher today, 12 September 2008. China's Shanghai Composite, Hong Kong's Hang Seng, Taiwan's Taiwan Weighted, Japan's Nikkei, Singapore's Straits Times and South Korea's Seoul Composite were up by between 0.2% to 2.22%.

US stocks rose on Thursday, 11 September 2008, as a report that major U.S. investment bank Lehman Brothers is shopping itself to possible suitors, including Bank of America, drove a last-minute rebound in financial shares. The Dow Jones gained 164.79 points, or 1.46%, to 11,433.71. The S&P; 500 index advanced 17.01 points, or 1.38%, to 1,249.05, while the Nasdaq Composite index added 29.52 points, or 1.32%, to 2,258.22.

Back home, weak global markets continued to haunt domestic bourses for the third straight day on Thursday, 11 September 2008. The BSE 30-share Sensex lost 338.32 points or 2.31% to 14,324.29 and the S&P; CNX Nifty slipped 109.95 points or 2.5% to 4,290.30.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 1506.96 crore while mutual funds bought shares worth Rs 586.59 crore on Thursday, 11 September 2008, according to provisional data on NSE.

FIIs were net sellers of Rs 1927.80 crore in the futures & options segment on Thursday, 11 September 2008. They were net sellers of index futures to the tune of Rs 1233.38 crore and sold index options worth Rs 505 crore. They were net sellers of stock futures to the tune of Rs 190.96 crore and bought stock options worth Rs 1.55 crore.

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