POST MARKET REPORT FOR OCTOBER 21

The central bank's rate cut, higher global 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 boursestoday. But intraday volatility was high. The

BSE Sensex rose 460.30points or 4.5%, extending Monday's

(20 October 2008) 2.48% gain. Index heavyweight Reliance

Industries spurted. Tata ConsultancyServices rose more than

12.5%. Jaiprakash Associates spurted morethan 16% on good

Q2 September 2008 results. Tata ConsultancyServices rose

more than 13%, Tata Steel rose more than 10% andReliance

Communications rose more than 11%. The market breadth was

strong. European markets and some Asian markets rose as France

said it willinvest $14 billion in banks and the US moved toward a

secondstimulus package. Sebi has disapproved of the overseas

lending and borrowing activityof FIIs and the consequent selling

pressure in the cash market inIndia. The Sebi warning to FIIs

against overseas lending andborrowing came after the data

showed FIIs had lent equities worthRs 348 crore to overseas

entities for the purpose of short selling,during 10 October-14

October 2008.