UPDATE FOR OCTOBER 1, 2008

Key benchmark indices are likely to extend gains for the second

straight day today, 1 October 2008 after a stupendous pullback o

n previous day on speculation the Senate will approve a $700

billion bank bailout package to unlock the credit markets and

bolster the global economy. The Singapore Nifty futures (SGX)

trading at over 50 points premium. Meanwhile, India's current

account deficit jumped to $10.72 billion in Q1 June 2008 as compared

to a deficit of $6.3 billion Q1 June 2007, as oil import bill has grown

faster than income from software services exports and remittances

from the Indian diaspora. The current account in the balance of payments

measures the net position of a country's exports and imports of goods

and services. The Indian rupee dropped to a fresh five-year low in early

trade today, 1 October 2008 on worries foreign investors would continue

to sell their local investments amid a spreading global financial crisis. The

partially convertible rupee was at 47.22/23 per dollar, its weakest

since 2 June 2003 and 0.55% lower from yesterday's close of 46.95/96.

Meanwhile, the Bombay Stock Exchange (BSE) will launch exchange-traded

rupee futures today, 1 October 2008. In August 2008, the National

Stock Exchange of India (NSE) kicked off exchange-traded currency

futures trading.