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.