MARKET UPDATE FOR 15 SEPTEMBER
Bears emerged victorious for the fifth consecutive day as
keybenchmark indices posted losses led by weak global cues.
Crude oilat 6-month low below $100 a barrel also failed to
boost sentiment.News that China's central bank has cut interest
rates helped thedomestic bourses cut steep intra-day losses.
Despite the recovery,the market ended the day with heavy losses.
Fears of more foreignfund withdrawals weighed heavily on the
Indian bourses today, 15September 2008, after US investment
bank Lehman Brothers filed forbankruptcy protection, making it
the largest and highest-profilecasualty of the global credit crisis.
The financial upheaval also involved other US institutions. Bank
ofAmerica has agreed to acquire Merrill Lynch & Co for $50 billion
inan all-stock deal that will give the US bank the world's largest
brokerage. Index heavyweight Reliance Industries (RIL) rebounded
aftertouching 52-week low. Maruti Suzuki India staged a sharp
recoveryfrom day's low. Banking pivotals also rebounded from
early lowsafter China's central bank today, 15 September 2008,
cut benchmarklending rates by 0.27%. All the BSE sectoral indices
declined withstocks from IT and real estate worst hit. Shares of
some of theholdings of Lehman Brothers in India as a foreign
institutionalinvestor including its holdings in sub-accounts tumbled.