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INDIAN EQUITIES RECOVER FROM WEAK START, END FLAT

Indo-Asian News Service


Mumbai, September 16, 2008

Indian equities markets on Tuesday seemed to have weathered the financial tsunami following the
collapse of Lehman Brothers and buy out of Merrill Lynch on Monday to end the day more or less flat
after opening very weak.

The recovery clearly showed signs of short covering, analysts said.

The 30-share benchmark sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended the day
at 13,518.80, down just 12.47 points or 0.09 per cent from its previous closing on Monday at 13,531.27.

The Sensex had, however, opened with a fall of nearly 500 points.

"This early fall gave bears with short positions a chance to book profits as over Friday, Monday and early
Tuesday there was a total fall of about 1,500 points," said Jagannadham Thunuguntla, equity head of
Delhi-based Nexgen Capitals Ltd.

Nexgen is the securities arm of the fourth largest share brokerage house in the country the SMC Group.

The National Stock Exchange saw a similar trend. It opened very weak, down more than 125 points, but
again began to recover on short covering by bears and some bottom fishing.

After two short dips during the day, it finally recovered enough to end the day with a marginal gain.

The broader based 50-share S&P Nifty of the NSE ended the day at 4,074.90, a marginal gain of 2 points
or 0.05 per cent over its previous close Monday.

The BSE midcap ended at 5,217.25, down 71.34 points or 1.35 per cent.

The BSE small cap index ended at 6,289.41, down 91.06 points or 1.43 per cent.

"With good news expected out of the world's largest economy the US later today, bears booked profits as
the markets may start moving up again on Wednesday," Thunuguntla said.

He was referring to the fact that the US central bank is expected to cut a key short-term interest rate by
25 to 50 basis points from its current 2 per cent.

"Given the current situation, they really have no choice but to inject liquidity even if it means adding a bit
to inflation," he said.

The world's largest and second largest investment banks Goldman Sachs and Morgan Stanley are also
expected to report earnings on Tuesday and Wednesday, respectively.

All this may push up markets on Wednesday onwards which led to the short covering, Thunuguntla said.

Sectorally, realty, consumer durables, health care and metal stocks were the biggest losers.
Oil and gas, banks, public sector units and fast moving consumer goods stocks were in the black.

State Bank of India (SBI), Sterlite Industries, Reliance Industries and HDFC Bank were the biggest
gainers.

SBI moved up Rs.96.60 or 6.49 per cent to 1,585.50 from its previous close on Monday of 1,488.90.
Sterlite Industries gained Rs. 12.40 or 2.66 per cent to close at Rs. 477.70 up from Rs. 465.30.

Reliance Industries moved up Rs.44.35 or 2.35 per cent to finish at Rs.1,928.45 up from Rs.1,884.10.
HDFC Bank rose Rs.26.00 or 2.16 per cent to close at Rs. 1,230.05 up from its previous close on Monday
of Rs. 1,204.05.

The top losers were ICICI Bank, Jaiprakash Associates, Maruti Suzuki and Ranbaxy Laboratories.

ICICI Bank lost Rs. 36.55 or 5.82 per cent to finish at Rs. 591.35 down from Rs. 627.90. Jaiprakash lost
Rs. 7.50 or 5.09 per cent to end at Rs.139.80 against its previous close on Monday of Rs.147.30.

Maruti Suzuki shed Rs.25.65 or 3.55 per cent to close at Rs. 697.75 down from Rs. 723.40. Ranbaxy
Laboratories ended the day at Rs. 405.90 down Rs. 13.55 or 3.23 per cent against its previous close of
Rs. 419.45.

The market sentiment was negative with 1,752 shares declining, 886 advancing and 73 remaining
unchanged.