MARKET UPDATE FOR 1 SEPT, 2008

The market may edge lower on weak cues from global equities.

US stocks tumbled on Friday, 29 August 2008, led lower by tech

shares after computer maker Dell warned that companies worldwide

are cutting back on technology spending. The Dow Jones industrial

average lost 171.47 points, or 1.46%, at 11,543.71. The Standard &

Poor's 500 Index was down 17.93 points, or 1.38%, at 1,282.75. The

Nasdaq Composite Index shed 44.12 points, or 1.83%, at 2,367.52.

Economic data added to the market's jitters ahead of the long

Labor Day weekend. US market remains closed on Monday,

1 September 2008, for Labor Day holiday. The Indian stock market

surged on Friday, 29 August 2008, as data showing a slower-than-expected

GDP growth in Q1 June 2008 and softening of inflation raised

hopes for a pause in monetary tightening by the central bank.

The BSE Sensex jumped 516.19 points. India's gross domestic

product (GDP) grew 7.9% in the June 2008 quarter from a year earlier,

easing from the previous quarter's 8.8% rise as industrial activity

slowed due to monetary tightening. The GDP growth in the first quarter

of the current fiscal year was lower than market expectations of a rise

of a little above 8% According to a recent report by Goldman Sachs,

the outcome of the southwest monsoon is key as 60% of India's labour

force is engaged in the agricultural sector and it has big knock-on effect

on industry and services. The monsoon rains between 1 June 2008 to

24 August 2008 were near normal at 1% below the long-term average.