OUTLOOK FOR NOV 7

The market may extend last two days' fall that followed

an earlier strong rebound tracking weak Asian stocks. Asian

stocks fell sharply for a third day as layoffs and corporate

profit warnings piled up in the face of a rapidly slowing

global economy. Back home, an unexpected rise in inflation

pulled the Sensex down nearly 4% on Thursday, 6 November

2008, in a highly choppy trade. The rise in inflation shattered

hopes of further interest rate cuts by the Reserve Bank of

India. Inflation based on the wholesale price index rose

10.72% in the year through 25 October 2008, higher than

previous week's 10.68% rise.

The Indian rupee fell more than half a percent in opening

deals on Friday, 7 November 2008, on expectations that

losses in overseas markets would lead the stock market to

drop and spur foreigners to continue withdrawing their

investments. At 9:02 IST, the partially convertible rupee

was at 47.95/96 per dollar, compared to Thursday's close

of 47.66/69 per dollar.