Indian Market underperformed

The market erased almost entire gains in contrast to strong start
after disappointing industrial production figures for January 2008
hit the market in early afternoon trade. The US Federal Reserve's
move to inject up to $200 billion of liquidity into strained credit
markets triggered rally across Asian and European markets. Indian
benchmarks underperformed all their global peers except China's
Shanghai Composite.

16 shares from the 30-member Sensex pack declined. The market
breadth was negative. Shares from metal and software slipped while
real estate stocks and select private sector banking stocks rose.

The 30-share BSE Sensex was up marginally by 4.83 points or 0.03%
at 16,127.98. Sensex lost 59.06 points at day's low of 16,064.09
touched in late trade. Sensex hit a high of 16,683.37 in early
trade. At the day's high, the Sensex gained 560.22 points. The
Sensex oscillated in a band of 619.28 points in the day in volatile
trade

At current 16,127.98, Sensex trades at a PE multiple of 15.35 to
16.12, based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30
Sensex companies.

The broader based S&P CNX Nifty rose 6.10 points or 0.13% at 4,872.
The Nifty March 2008 futures were at 4866, a discount of 6 points
over spot closing.

As per data released by the government today afternoon, growth in
index of industrial production (IIP) slipped to 5.3% in January
2008 as compared with 11.6% in January 2007, the lowest since
October 2006, when it stood at 4.51%. Growth in the manufacturing
sector declined to 5.9% in January 2008 as against 12.3% in January
2007.

The next trigger for the market would come from the figures of
advance tax payment by corporates for the fourth installment, which
falls due on 15 March 2008.

The market breadth which was positive throughout the day, turned
negative in late trade as small-cap and mid-cap shares succumbed to
selling pressure: on BSE 1,448 shares declined as compared to 1220
that advanced. 59 shares remained unchanged.

The BSE Mid-Cap index was down 1.19% to 6,909.85 and the BSE
Small-Cap index was down 0.32% to 8,531.92. Both these indices
underperformed the Sensex

The total turnover amounted to Rs 6372 crore as compared to Rs
7,271.80 crore yesterday, 11 March 2008

Turnover in NSE's futures & options segment amounted to Rs 44632.78
crore as compared to Rs 38176.25 crore yesterday, 11 March 2008

Sectoral indices on BSE displayed mixed trend. The BSE Consumer
Durables index (down 1.36% to 4,201.54), the BSE Power (down 0.06%
to 3,269.41), the BSE FMCG index (down 1.05% at 2,181.18), the BSE
TecK index (down 1.03% to 3,024.31 and the BSE PSU index (down
0.16% to 7,855.28), the BSE IT index (down 2.15% to 3,472.41), the
BSE Metal index (down 2.39% to 15,688.91), and the BSE Auto (down
0.42% at 4,649.51), underperformed the Sensex.

The BSE Capital Goods index (up 0.30% at 14,101.56), the BSE Realty
index (up 1.23% at 8,327.75), the BSE Oil & Gas index (up 0.77% to
10,642.09), the BSE Health Care index (up 1.12% at 3,876.52), and
the BSE Bankex (up 0.80% at 8,554.85), outperformed the Sensex.

Metal shares declined on profit booking. India's largest private
sector aluminium maker in terms of sales, Hindalco Industries lost
6.51% to Rs 189.70 on 15.86 lakh shares. It was the top loser from
Sensex pack.

Tata Steel, the country's largest private sector steel maker in
terms of sales, slipped 6.48% to Rs 766. The stock slipped sharply
from day's high of Rs 838 in early trade. The company reported
34.22% rise in consolidated net profit to Rs 1,415.54 crore on
428.61% spurt in total income to Rs 32,096.03 crore in Q3 December
2007 over Q3 December 2006. The results were announced before
trading hours today, 12 March 2008.

Jindal Stainless (down 4.99% to Rs 138), Steel Authority of India
(down 7.40% to Rs 216), and Jindal Saw (down 1.37% to Rs 790), were
the other losers from metal pack.

IT pivotals extended losses in late trade. Infosys (down 3.41% to
Rs 1379.90), Satyam Computer Services (down 4.74% to Rs 377.10),
Wipro (down 0.22% to Rs 391.50), slipped. However India's largest
software services exporter TCS rose 0.58% to Rs 828

DLF (down 5.49% to Rs 708), Reliance Communications (down 2.29% to
Rs 538.80), and Tata Motors (down 2.06% to Rs 745), edged lower
from the Sensex pack.

Cipla, the country's third largest pharma company in terms of net
sales, advanced 4.03% to Rs 203.70 on 8.21 lakh shares. It was the
top gainer from Sensex pack.

India's largest private sector company in terms of market
capitalisation and oil refiner Reliance Industries gained 0.58% to
Rs 2360.25 on 8.25 lakh shares. The stock came off session's high
of Rs 2428.95.

Private sector banks were firm. They had surged in early trade
tracking rally in their ADRs on the New York Stock Exchange (NYSE)
on Tuesday, 11 March 2008. India's second largest private sector
bank in terms of net profit HDFC Bank rose 2.41% to Rs 1364.10
after its ADR surged 13% on the NYSE. ICICI Bank, the country's
largest private sector bank in terms of net profit jumped 3.35% to
Rs 883 after its ADR jumped 10% on the NYSE. Both these shares saw
strong start with HDFC Bank hitting high of Rs 1430 and ICICI Bank
striking high of Rs 915.

However India's largest bank in terms of assets State Bank of India
slipped 5.65% to Rs 1783.90.

Reliance Energy (up 2.94% to Rs 1325), Grasim (up 4% to Rs 2901),
and Bharti Airtel (up 2.93% to Rs 812.20), rose from the Sensex
pack.

Rural Electrification Corporation settled at Rs 121.30 on BSE, a
premium of 15.52% compared to IPO price of Rs 105. The stock
debuted at Rs 125, a premium of 19.04% over issue price of Rs 105.
The stock hit a high of Rs 128.40 and low of Rs 118.85. The counter
saw high volumes of 6.75 crore shares on BSE.

Shares of oil marketing companies declined on reports that Indian
crude basket crossed $100 a barrel mark for the first time on
Monday, 10 March 2008. Hindustan Petroleum Corporation (down 3.75%
to Rs 276), Bharat Petroleum Corporation (down 3.46% to Rs 428.25),
and Indian Oil Corporation (down 2.91% to Rs 500), slipped

Marico declined 3.22% to Rs 63.20. The company said it is exiting
processed foods business by selling its Sil brand to Danish
business house, Good Food Group, for an undisclosed sum. Sil us a
small brand in Marico's portfolio, with annual revenue of about Rs
8 crore.

Tata Communications rose 4.74% to Rs 505 on reports it is looking
to raise $1 billion to partly fund its expansion plans for the next
three years. As per reports, the company is in talks with banks to
raise $350 million within a month.

KEC International slipped 1.25% to Rs 715. The stock surged to high
of Rs 750 after it said it has bagged two contracts worth Rs 46
crore from Madhya Pradesh Power Transmission Company for the supply
and construction of a 220 kilovolt double circuit transmission.

Jaiprakash Associates declined 2.89% to Rs 243.700 As per reports,
the company's wholly owned subsidiary Jaiprakash Infratech may
raise Rs 1000 crore through private placement to ICICI Venture.

Rural Electrification Corporation was the top traded counter on BSE
with turnover of Rs 825 crore followed by Reliance Natural
Resources (Rs 268 crore), Reliance Petroleum (Rs 207 crore),
Reliance Industries (Rs 198 crore) and GSS America Systems (Rs 194
crore) in that order.

European markets extended early gains today, 12 March 2008. Key
benchmark indices from United Kingdom (up 1.64% to 5,783.80),
Germany (up 1.56% to 6,626.38) and France (up 2.08% to 4,723.70)
advanced.

Asian markets were trading firm today, 12 March 2008. Hong Kong's
Hang Seng (up 1.86% at 23,422.76), Japan's Nikkei (up 1.60% at
12,861.13), Taiwan's Taiwan Weighted (up 0.64% at 8,435.36),
Singapore's Straits Times (up 2% at 2,917.94) and South Korea's
Seoul Composite (up 1.06% at 1,658.83) advanced. However China's
Shanghai Composite index fell 2.30% to 4,070.11

US markets rallied the most in five years on Tuesday, 11 March 2008
after the US Federal Reserve decided to boost liquidity in order to
shore up banks battered by mortgage- related losses. The US Federal
Reserve announced that along with the European Central Bank and the
central banks of Canada and Switzerland, it would loan investment
banks money in exchange for debt, including mortgage-backed
securities.

The Dow Jones industrial average jumped 416.66 points, or 3.6%, to
12,156.81. The Standard & Poor's 500 index advanced 47.28 points,
or 3.7%, to 1,320.65, while the Nasdaq Composite index added 86.42
points, or about 4%, to 2,255.76.

Crude oil eased slightly today, 12 March 2008 after hitting a
record of $109.72 yesterday, 11 March 2008 as investors grappled
with a boost to the dollar after the US Federal Reserve and other
central banks pumped fresh funds into the financial system. U.S.
crude for April delivery fell 5 cents to $108.70 a barrel. London
Brent crude fell 1% to $105.24.