MARKET UPDATE AT 11AM ON SEPTEMBER 17

Key benchmark indices opened higher today, 17 September

2008boosted by the US Federal Reserve's bailout package for

thebeleaguered American International Group (AIG). The Federal

OpenMarket Committee decided to keep its target for the federal

fundsrate at 2%. However fresh selling pulled the bourses in red.

The US Federal Reserve in a meeting on Tuesday, 16 September

2008announced an $85 billion rescue plan to help American International

Group in exchange for a 79.9% stake. The deal would avoid thebiggest

corporate bankruptcy ever and follows a government bailoutof

mortgage lenders Freddie Mac and Fannie Mae earlier this

month IT pivotals were in demand. However Ranbaxy Laboratories


slumpedover 8% and ICICI Bank shed over 4%. The market breadth

waspositive. At 10:21 IST, the BSE 30-share Sensex was down 147.94

points or1.11% to 13,369.06. The Sensex opened with a upward gap

of 101.94points at 13,620.74, which is also its day's high so far. At

theday's low of 13,357.60 hit in early trade, the Sensex lost 161.20points.

The S&P CNX Nifty lost 38.90 points or 0.95% to 4,036.