Monday, October 6, 2008

UPDATE

MARKET REPORT FOR OCTOBER 6

The key benchmark indices extended steep losses of the

previoustrading session as stocks fell across the globe as global

financialcrisis deepened. A sell-off in index pivotals pulled

down Sensex by724.62 points today, 6 October 2008. US futures

were downindicating of lower opening of US markets. The Sensex

hit itslowest level in more than two years and the S&P CNX Nifty

hit 1-½year low. In a major development, the market regulator

Securities & ExchangeBoard of India (Sebi) today, 6 October 2008

, announced removal ofrestriction on issue of participatory notes

(P-notes) by foreigninstitutional investors (FIIs) against

securities, includingderivatives, as underlying. The announcement

was made shortly aftertrading hours. P-notes are issued by foreign

funds registered inIndia to unregistered overseas investors. Consumer

durables and realty stocks plummeted. Sterlite Industriesfell more

than 15%. Reliance Infrastrucutre and JaiprakashAssociates fell more

than 13.5% each. Reliance Industries (RIL)fell more than 6.5% while

Infosys fell more than 5%. The marketbreadth was weak as selling

was witnessed across the board.