MARKET UPDATE AT 1 PM IST

The key benchmark indices remained rangebound at higher

levels inafternoon trade. The BSE Sensex was up 322.15 points

or 3.15%. Themarket had pared gains in early afternoon trade

after a sharpsurge. The central bank's rate cut, higher Asian markets

and shortcovering on the stock market regulator Securities &

Exchange Boardof India (Sebi)'s warning to foreign funds against

overseas lendingand borrowing of Indian securities, boosted the

domestic bourses. IT stocks surged. Rate sensitive banking stocks

rose. Indexheavyweight Reliance Industries came off from day's

high.Jaiprakash Associates spurted more than 12% on good Q2

September2008 results. Stelite Industries, Reliance Communications

rose morethan 7% each. The market breadth was strong. European

markets which opened after Indian market were mixed, Keybenchmark

indices in France and Germany were up by between 0.91% to2.21%.

In UK, the FYSE 100 index was down 0.12%.