The market failed to sustain at higher level as fresh selling emerged dragging it to days low. Trading session witnessed some choppy swings. Inflation based on the wholesale price index (WPI) rose to 8.24% in the year through 24 May 2008, compared to previous week's rise of 8.10%. The government also revised the annual inflation rate for the year through 29 March 2008 to 7.75% as compared to 7.41% reported earlier.

Global cues were positive, with European and Asian markets trading in positive zone. US markets saw a sharp rally yesterday, 5 June 2008. Market breadth turned negative.

Crude oil climbed close to $6 on Thursday, 5 June 2008, to more than $127 per barrel as funds shifted back into oil when the dollar fell against the euro following a signal from the European Central Bank that it may raise interest rates. The crude contract climbed another 0.3% in Asian trading today.

At 14:30 IST, the 30-share BSE Sensex was down 155.42 points or 0.99% at 15,614.30, also its days low. Sensex opened 144.69 points higher at 15,914.41 and struck a high of 15,970.70 in early trade. At the days high, Sensex gained 200.98 points.

The broader based S&P; CNX Nifty was down 28.05 points or 0.60% at 4,648.90

The market breadth turned negative on BSE with 1307 shares declining as compared to 1259 that advanced. 80 remained unchanged.

The total turnover on BSE amounted to Rs 3973 crore by 14:30 IST as compared to Rs 2754 crore by 13:30 IST.

Among the 30-member Sensex pack, 23 declined while the rest advanced.

Mahindra & Mahindra (M&M;), the countrys largest tractor company in terms of sales, advanced 4.31% to Rs 587 on 46,632 shares. On 5 June 2008 the company agreed to buy Italian auto designer Engines Engineering for an undisclosed sum. It was the top gainer from Sensex pack.

Indias largest state run engineering company in terms of outstanding order book Bharat Heavy Electricals rose 0.80% to Rs 1456.50. On 26 May 2008, the company had bagged Rs 1,150 crore turnkey contract from a joint venture of HPCL and Mittal Energy for setting up an energy efficient 153 megawatt captive power plant at Bhatinda in Punjab.

Tata Motors (up 0.84% to Rs 537.10), Infosys Technologies (up 0.63% to Rs 1991.45), and Grasim (up 0.30% to Rs 2253.05) edged higher.

Indias third largest software services exporter Wipro lost 3.44% to Rs 510.20 on 2.26 lakh shares. It was the top loser from Sensex pack.

Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) recovered from days low of Rs 2212 and was now up 0.46% to Rs 2259.50 on 14.18 lakh shares. The stock had surged to an intra-day high of Rs 2299 in opening trade.

Hindalco Industries (down 3.02% to Rs 176.40), ITC (down 2.95% to Rs 215.80) and Bharti Airtel (down 2.12% to Rs 803.80), edged lower from the Sensex pack.

Indiabulls Real Estate jumped 6.80% to Rs 433 ahead of the sale of shares in Indiabulls Properties Investment Trust in Singapore, which ends today. The stock struck in intra-day high of Rs 475.80. The real estate investment trust aims to raise S$388.3 million ($284 million) from selling 353 million units in the trust in range of Singapore $1 to Singapore $1.10 a piece. So far, the sale is reportedly subscribed 1.8 times.

Karur Vysya Bank rose 2.68% to Rs 363.80 on reporting 33.39% rise in net profit to Rs 70.54 crore on 39.33% rise in total income to Rs 354.21 crore in Q4 March 2008 over Q4 March 2007.

The bank announced the result during the market hours today 6 June 2008.

Analysts opine that higher inflationary expectations following the recent fuel price hike have given rise to fears of a cash reserve ratio (CRR) or interest rate hike by the Reserve Bank of India, which is a negative for markets. Reserve Bank of India governor YV Reddy yesterday, 5 June 2008 hinted at a possible increase in CRR in an attempt to curb inflationary expectations

European markets, which opened after Indian markets were trading firm. Key benchmark indices in United Kingdom (up 1.11% to 6,062), France (up 0.93% to 4,952.36), and Germany (up 0.79% to 6996.50), advanced.

Most Asian markets, which opened before Indian markets, were trading higher today, 6 June 2008. Japan's Nikkei (up 1.03% at 14,489.44), Hang Seng (up 0.61% at 24,402.18), Taiwan's Taiwan Weighted (up 0.08% at 8,745.35), Singapore's Straits Times (up 0.26% at 3,151.94), advanced. However, China's Shanghai Composite declined 0.56% at 3,332.77.

US markets rallied yesterday, 5 June 2008 on stronger-than-expected May 2008 sales by Wal-Mart and other retailers and a surprising fall in weekly jobless claims, spurring optimism about the economy's health. The Dow Jones industrial average gained 213.97 points, or 1.73%, to 12,604.45. The S&P; 500 index advanced 26.85 points, or 1.95%, to 1,404.05, and the Nasdaq Composite index surged 46.80 points, or 1.87%, to 2,549.94

The European Central Bank said yesterday, 5 June 2008, it would keep key lending rates unchanged at 4%. The bank, however, anticipates inflation to be more persistent than previously anticipated. Also the Bank of England kept its benchmark interest rate unchanged at 5% yesterday, 5 June 2008.

Back home, frenzied buying coupled with short covering after three straight days of fall triggered a solid rally yesterday, 5 June 2008. The 30-share BSE Sensex jumped 254.93 points or 1.64% at 15,769.72 and the broader based S&P; CNX Nifty was up 91.35 points or 1.99% to 4,676.95, on that day.

As per provisional data, foreign funds sold shares worth a net Rs 1418.34 crore yesterday, 5 June 2008. Domestic funds bought shares worth a net Rs 570.03 crore on that day.

Foreign institutional investors (FIIs) were net buyers of Rs 1054.43 crore in the futures & options segment yesterday, 5 June 2008. They were net buyers of index futures to the tune of Rs 1035.25 crore and bought index options worth Rs 405.81 crore. They were net sellers of stock futures to the tune of Rs 402.85 crore and bought stock options worth Rs 16.22 crore.

Meanwhile, market regulator Securities and Exchange Board of India (Sebi) yesterday, 5 June 2008, ruled out relaxing curbs imposed last year on participatory notes (PNs), a derivative tool that enables unregistered foreign investors to invest in Indian stock markets. In October 2007, Sebi had imposed restrictions on Foreign Institutional Investors (FIIs) to issue PNs and asked FIIs and their sub-accounts not to issue fresh PNs against underlying derivatives and wind up their existing position in 18 months.

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