MARKET UPDATE FOR OCTOBER 10

There is fear and panic on the stock markets. The bourses

suffered heavy losses today on the back of global sell-off and

on datashowing dismal industrial production growth in August

2008. The BSE30-share Sensex lost 800.51 points. IT stocks

suffered on downwardrevision in guidance in dollar terms by

IT bellwether InfosysTechnologies. Banking stocks were volatile

reacting to a slew of news such as cutin cash reserve rate, slowdown

in industrial production and fall ininflation. Reliance Communications

declined 21.02%, RelianceInfrastructure and ICICI Bank lost

more than 19% each andJaiprakash Associates shed 16.27%.

Securities & Exchange Board of India (Sebi) chief C B Bhave today

said there was no unusual activity in the stock market. He further

said there has been no shorting by institutions in cash markets.

Inflation based on the whole price index rose 11.8% in 12-months to

27 September 2008, lower than previous week's 11.99% rise, data

released by the government during trading hours today, showed.

Stocks fell across the globe despite worldwide central bank

measures to stave off a crisis. Bank bailouts, liquidity injections

and interest rate cuts across the world have failed to quell

investor anxiety with Asian stocks tumbling today, following

overnight setback in US stocks. Back home, the Reserve Bank

of India (RBI) toady cut the cashReserve Ratio (CRR) second

time in the week. The central bank cutCRR by 100 basis points

after 50 basis point cut earlier in theweek.