UPDATE AT 11AM ON OCTOBER 7

The market regulator Securities & Exchange Board of India

(Sebi)'sdecision to lift restriction on issue of participatory notes

andthe Reserve Bank of India's surprise steep 50 basis cut in the

cashreserve ration triggered a rebound on the bourses after steep

losses of the past two trading sessions. The Sensex was up 351.70

points. Both the Sebi and RBI announcements were made after trading

hours on Monday, 6 October 2008. A recovery in Asian stocks following

a larger than expected 100basis points cut in interest rate by

Australia's central banktoday, 7 October 2008, and higher US futures

contributed to earlysurge on the domestic bourses. Rate sensitive

banking and realtystocks rose. Reliance Industries recovered from

52-week low. US futures were up. Nasdaq was up by 20 points and

Dow Jonesfutures were up 121 points. At 10:21 IST, the BSE 30-share

Sensex was up 351.70 points or 2.96%to 12,151.60. The index rose

253.92 points at the day's low of12,055.62, hit in early trade,. The

Sensex surged 379.73 points atday's high of 12,181.43, in early trade.

The S&P CNX Nifty was up 117.35 points or 3.26% to 3,719.70. The

BSE Mid-Cap index was up 1.63% at 4,415.10 and the BSESmall-Cap

index was up 1.29% at 5,152.80.