Buy Easun Reyrolle with a stop loss of Rs 36 for short-term targets of Rs 51- Rs 60.

Buy GE Shipping with stop loss of Rs 200 for target of Rs 250-Rs 266

Unabated buying in blue chips throughout the day triggered a solid rally after China’s massive economic stimulus plan raised expectations that authorities elsewhere would follow suit. The BSE Sensex vaulted 571.87 points or 5.74%. Buying was conspicuous across-the-board with all the sectoral indices on BSE logging gains. Reduction in India’s economic growth forecast by global investment banking and securities firm Goldman Sachs failed to put brakes on the rally.

The BSE Sensex surged past the psychologically vital 10,000 mark and the S&P CNX Nifty raced past the psychological important 3,000 mark. Though the barometer index BSE Sensex had breached 10,000 level a number of times in intraday trade on Friday, 7 November 2008, it had ended below that level.

Goldman Sachs today, 10 November 2008, cut its economic growth for India to 6.7% from 7.5% in the year ending March 2009 due to the knock-on effects of the global financial crisis. It also cut its growth projection for the year ending March 2010 (FY 2010) to 5.8% from 7% on concerns negative global financial stocks will continue to slow activities across the board.

European shares rose as commodity stocks soared after China unveiled a nearly $600-billion economic stimulus plan to boost domestic demand. Key benchmark indices in UK, Germany and France were up by between 3.11% and 3.35%.

China’s Shanghai Composite surged 7.27% after the government on Sunday, 9 November 2008, announced $586 billion in infrastructure and public welfare spending to slow the global financial crisis’s impact on its economy, the world’s fourth-largest. Other Asian markets, too, were firm. Key benchmark indices in Hong Kong, Japan, Singapore and South Korea were up by between 1.16% and 5.81%. However Taiwan’s Taiwan Weighted was down 0.04% despite announcing 25 basis points cut in interest rates for the fourth time in two months after exports dropped in October 2008 by most in three years.

Trading in US index futures indicated the Dow will rise 204 points at the opening bell.

Meanwhile, economic officials from 20 leading nations called Sunday for increased government spending to boost the troubled global economy and said developing countries deserve a prominent role in talks to overhaul the world financial system. Each country will have to design its own stimulus package to meet its specific needs, said David McCormick, the US Treasury’s undersecretary for international affairs.

US President-elect Barack Obama on Friday, 7 November 2008, vowed to act swiftly to address the global financial crisis.

The BSE Sensex surged 571.87 points or 5.74%, to close at 10,536.16. The Sensex jumped 606.29 points at the day’s high of 10,570.58 in late trade. At the day’s low of 10,095.90, the Sensex rose 131.61 points in early trade.

The S&P CNX Nifty advanced 175.25 points or 5.89%, to settle at 3148.25. Nifty November 2008 futures were at 3167, at a premium of 18.75 points as compared to spot. Turnover in NSE’s futures & options (F&O) segment declined to Rs 30,290.49 crore from Rs 36,963.32 crore on Friday, 7 November 2008.

The barometer index BSE Sensex is down 9750.83 points or 48.06% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 10670.61 points or 50.31% below its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth, indicating the overall health of the market, was strong on BSE with 1705 shares advancing as compared with 856 that declined. 70 shares remained unchanged.

The BSE Mid-Cap rose 3.57% to 3,475.09 and the BSE Small-Cap index advanced 2.25% to 3,988.03.

The total turnover on the BSE amounted to Rs 3689 crore as compared to Rs 3458.24 crore on Friday, 7 November 2008.

Among the 30-member Sensex pack, 28 advanced while the rest slipped.

The BSE Metal Index surged the most among the sectoral indices on BSE, rising 10.92% to 5,714.83, on hopes Chinese demand will rise after the stimulus package. India’s top aluminium and copper producer by sales, Sterlite Industries jumped 14.16% to Rs 281 on 15.69 lakh shares. It was the top gainer from the Sensex pack.

Hindalco Industries (up 9.76% to Rs 66.35), National Aluminium Company (up 12.35% to Rs 186.20), Steel Authority of India (up 5.75% to Rs 89.30), and Hindustan Zinc (up 12.59% to Rs 355), surged.

World’s sixth largest steel maker in terms of capacity Tata Steel galloped 12.78% to Rs 214.40, even as its subsidiary and Europe’s second largest steelmaker by sales Corus, said on Friday, 7 November 2008, that it decided to extend the production cuts it announced last month beyond December 2008. Corus, in October this year, announced plans to reduce third quarter production by 1 million tonnes of crude steel, equivalent to 20% of its output.

Sesa Goa galloped 8.32% to Rs 86.55 on reports the government has altered the duty structure on iron ore exports, aiming to trim the tax burden on miners.

India’s largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) advanced 7.16% to Rs 1305 on 16.66 lakh shares, ahead of a court verdict on the gas dispute with National Thermal Power Corporation on 11 November 2008. NTPC, India’s biggest power generation firm by sales, rose 8.63% to Rs 164.25

India’s top oil exploration company by net profit ONGC spurted 8.69% to Rs 806.05 after media reports quoted ONGC’s chairman RS Sharma on Saturday, 8 November 2008, as saying that the company is not facing cash flow problems and is still looking for acquisition opportunities despite the global financial crisis. Sharma added that ONGC was looking at possible acquisitions in Africa and Latin America. The BSE Oil & Gas index shot up by 6.11% to 6,381.08.

Telecom pivotals gained on fresh buying. Reliance Communications, the country’s second largest telecom services provider by sales rose 5.81% to Rs 241.40 whereas India’s largest telecom services provider by market share Bharti Airtel spurted 10.85% to Rs 720.50.

Recent reports indicated government will allocate spectrum for next generation wireless networks to successful bidders by the end of January 2009 after holding an auction as planned earlier in the month.

L&T, Indian top engineering and construction firm by sales and Bharat Heavy Electricals, the country’s largest power equipment maker by sales, led gains in the BSE Capital Goods index. It rose 6.33% to 8,118.43. Larsen & Toubro surged 5.17% to Rs 916 after its consortium with Malaysia’s Scomi Engineering Bhd won an order worth Rs 2460 crore. Bharat Heavy Electricals gained 6.82% to Rs 1500.90

Suzlon Energy slipped 2.62% to Rs 68.85 after Morgan Stanley downgraded the stock while lowering the price target to Rs 52.45 from earlier Rs 450 citing slowdown in the global wind turbine market and the unresolved technological issues.

Banking shares edged higher boosted by the Reserve Bank of India’s (RBI) announcement after market hours on Friday, 7 November 2008 to provide foreign exchange (forex) liquidity to banks that are facing liquidity crunch following the drying up of lines of credit globally. The Bankex gained 4.53% at 5,782.49.

ICICI Bank (up 8.99% to Rs 470), State Bank of India (up 5.26% to Rs 1314.90), and HDFC Bank (up 0.14% to Rs 1089.80) gained.

Axis Bank (up 4.48% to Rs 607), Kotak Mahindra Bank (up 5.03% to Rs 432.20), and Punjab National Bank (up 1.89% to Rs 505.50), advanced.

Auto stocks were mixed after latest data showed fall in sales in key segments in the month just gone by. The BSE Auto index was up 2.46% to 2,727.

India’s top truck maker by sales Tata Motors vaulted 7.11% to Rs 170.20 on bargain hunting even as the company said it will shut down its commercial vehicle plant at Pune to avoid unnecessary inventory build-up. The stock was down 49.81% to Rs 158.90 in one month on 7 November 2008.

India’s top tractor maker by sales Mahindra & Mahindra rose 5.29% to Rs 391.95. India’s top small car maker by sales Maruti Suzuki India lost 0.60% to Rs 594.05 after moving in a band of Rs 583.30 and Rs 610 during the day.

According to the figures released by the Society of Indian Automobile Manufacturers (Siam), passenger car sales declined 6.6% to 98,900 units in October 2008 over October 2007. Sales of trucks and buses fell 35.9% to 28,027 units.

IT pivotals advanced, with the BSE IT index rising 5.44% to 2,815.88, as firm American depository receipts offset a strong rupee. India’s third largest IT exporter by sales Satyam Computer Services rose 6.97% to Rs 297.10 as ADR jumped 10.64%. India’s fourth largest IT exporter by sales Wipro rose 4.43% to Rs 272 as ADR advanced 6.51%, on the New York Stock Exchange on Friday, 7 November 2008.

India’s second largest IT exporter by sales Infosys rose 6.16% to Rs 1346, off sharply from day’s low of Rs 1237. Its ADR surged 7.97% on the New York Stock Exchange on Friday, 7 November 2008. India’s largest IT exporter by sales Tata Consultancy Services rose 4.47% to Rs 548.

The partially convertible rupee was at 47.38/39 per dollar, stronger than Friday’s close of 47.65/66 per dollar, as a rally in the stock market raised expectations of renewed capital inflows. A rise in rupee impacts margins at IT firms as they derive a lion’s share from exports to the US.

Power stocks rose even as the Power secretary Anil Razdan today, 10 November 2008, said the government has deferred bidding for the 4,000 ultra mega power project at Tilaiya in eastern India by a month because of the credit crisis. Tata Power Company advanced 11.89% to Rs 825.05 and Reliance Power rose 4.27% to Rs 122.20. The BSE Power index gained 7.84% to 1,916.99.

Ranbaxy Laboratories (up 6.11% to Rs 231.75), DLF (up 6.05% to Rs 297.70), and Grasim (up 5.45% to Rs 1100), edged higher from the Sensex pack.

India’s top cigarette company by sales, ITC slipped 1.55% to Rs 172.10 on profit booking after gaining 13.58% in the week ended 7 November 2008. It was the top loser from the Sensex pack.

Infrastructure stocks extended recent gains after the latest data showed rise in infrastructure output. Reliance Infrastructure (up 11.29% to Rs 624.25), GVK Power & Infrastructure (up 14.46% to Rs 20.82), GMR Infrastructure (up 17.41% to Rs 79.25), and Lanco Infrastructure (up 8.32% to Rs 183) surged.

IVRCL Infrastructures & Projects jumped 11.47% to Rs 155 on bagging a lift irrigation project worth Rs 893 crore.

India’s infrastructure sector output grew 5.1% in September 2008 from a year earlier, well above 2.3% annual growth in August 2008, government data released during trading hours on Friday, 7 November 2008 showed.

State-run oil marketing firms slipped after an initial surge as crude oil prices rose. Bharat Petroleum Corporation (down 4.86% to Rs 316, off day’s high of Rs 340), Hindustan Petroleum Corporation (down 1.48% to Rs 216, off day’s high of Rs 225) slipped. Indian Oil Corporation was up marginally by 0.18% to Rs 368, off day’s high of Rs 377.

State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. US light crude for December 2008 delivery rose $2.46 or 4% to $63.50 a barrel today, 10 November 2008 fuelled by top exporter Saudi Arabia’s plans to cut December supplies to Asia, a weaker dollar and hopes that global economies’ plans to lift growth could avert recession.

Sugar shares gained after prices rose by Rs 10 a quintal to Rs 1,840 today, 10 November 2008 in the wholesale foodgrains market. Shree Renuka Sugars (up 9.61% to Rs 68.45), Bajaj Hindustan (up 6.01% to Rs 53.80), and Balrampur Chini Mills (up 4.34% to Rs 45.70), advanced

Among the side counters, Bombay Dyeing & Manufacturing Company (up 21.88% to Rs 227), Arvind Mills (up 21.24% to Rs 19.75), and Praj Industries (up 18.30% to Rs 85.35), surged.

Deccan Chronicle Holdings soared 20.44% to Rs 54.50 on reports the company had transferred franchise rights for the Indian Premier League’s Hyderabad team to its newly formed unit.

Aurobindo Pharma surged 20.55% to Rs 136.40 on receiving final approval from the US Food & Drug Administration for manufacturing and marketing Sertraline hydrochloride in 20 miligram strength. The company made this announcement after trading hours on Friday, 7 November 2008.

Key benchmark indices may continue to be guided by overseas cues as sentiments remain fragile due worries of widespread global recession. Back home, the index of industrial production (IIP) data will be watched keenly.

The IIP data for September 2008 will be released on 12 November 2008. Growth in core industries dipped in August 2008, tracking the overall decline in IIP to 1.3%.

Central banks across the globe were seen rushing to cut interest rates during the week to shore up the world economy and calm panicked financial markets. The European Central Bank cut its key rate by 0.50% to 3.25% on 6 November 2008. The Bank of England slashed its benchmark interest rate by 1.5% points on 6 November 2008 to 3%. Meanwhile central bank�s in Switzerland, South Korea, Denmark, and Czech Republic also announced rate cuts during the week. In late October 2008, the US Federal Reserve slashed its key lending rate by a half point to match a historic low of 1%.

India Inc’s report card for the September 2008 quarter depicts a dismal performance, partly due to ballooning interest cost. Aggregate results of 2328 companies showed a 26.10% fall despite a 35.40% increase in net sales in Q2 September 2008 over Q2 September 2007. Interest cost jumped 38.20% in Q2 September 2008 over Q2 September 2007.

The International Monetary Fund (IMF), in its World Outlook Report released on 6 November 2008, cut its 2008 global growth forecast to 3.7% and 2009 global growth forecast to 2.2% from its October 2008 estimate of 3.9% and 3%, respectively. The IMF also cut its 2008 India growth forecast to 7.8% and 2009 India growth forecast to 6.3% from its October 2008 estimate of 7.9% and 6.9%, respectively.

Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FII were net sellers of Rs 49,947.60 crore in calendar 2008, till 5 November 2008.

On the flip side the sustained fall in crude oil prices from a record high of $147.27 a barrel struck on 11 July 2008 augurs well for the global economy. New York’s main contract, light sweet crude for December 2008 delivery was hovering near $60 in Asian trade on fears of slowdown in global economy.

The BSE 30-share Sensex rose 176.23 points or 1.80% to 9,964.29 in the week ended Friday, 7 November 2008. The barometer index BSE Sensex is down 10322.70 points or 50.88% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11242.48 points or 53.01% below its all-time high of 21,206.77 struck on 10 January 2008

Key benchmark indices eked out gains in the week ended Friday, 7 November 2008, ending six-week loosing streak helped by global central bank measures to tackle the turmoil in the financial markets. The BSE Sensex edged higher in three out of the five trading sessions.

Central banks across the globe were seen rushing to cut interest rates during the week to shore up the world economy and calm panicked financial markets. The European Central Bank cut its key rate by 0.50% to 3.25% on 6 November 2008. The Bank of England slashed its benchmark interest rate by 1.5% points on 6 November 2008 to 3%. Meanwhile central bank�s in Switzerland, South Korea, Denmark, and Czech Republic also announced rate cuts during the week. In late October 2008, the US Federal Reserve slashed its key-lending rate by a half point to match a historic low of 1%.

The BSE 30-share Sensex rose 176.23 points or 1.80% to 9,964.29 in the week ended Friday, 7 November 2008. The S&P CNX Nifty gained 87.30 points or 3.02% to 2,973 in the week.

The BSE Mid-Cap rose 155.35 points or 4.85% to 3,355.38 and the BSE Small-Cap index advanced 134.99 points or 3.58% to 3,900.10. Both the indices outperformed the Sensex.

The barometer index BSE Sensex is down 10322.70 points or 50.88% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11242.48 points or 53.01% below its all-time high of 21,206.77 struck on 10 January 2008.

Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FII were net sellers of Rs 49,947.60 crore in calendar 2008, till 5 November 2008.

Trading for the week started on an upbeat note following a surprise rate cut by the Reserve Bank of India over the weekend. The stock market regulator�s decision to increase tenure for lending and borrowing of stocks, and firm Asian equities, also supported the bourses. The BSE 30-share Sensex jumped 549.62 points or 5.62% to 10,337.68 and the S&P CNX Nifty surged 158.25 points or 5.48% to 3,043.85, on Monday, 3 November 2008.

Bank stocks led the rally in choppy session on Tuesday, 4 November 2008 with gains in key overseas equity markets supporting the upmove. The BSE 30-share Sensex rose 293.44 points or 2.84% to 10,631.12 and the S&P CNX Nifty was up 98.25 points or 3.23% to 3,142.10, on that day.

Weakness in European stocks and lower US index futures pulled the market sharply lower on Wednesday, 5 November 2008. The BSE 30-share Sensex plunged 511.11 points or 4.81% to 10,120.01 and the S&P CNX Nifty was down 147.15 points or 4.68% to 2,994.95, on that day.

The 30-share BSE Sensex fell 385.79 points or 3.81% to 9,734.22 and the 50-unit S&P Nifty was down 102.30 points or 3.42% to 2892.65 on Thursday, 6 November 2008 as an unexpected increase in inflation shattered hopes of further interest rate cuts by the Reserve Bank of India.

Data showing rise in infrastructure sector output and positive global cues boosted the domestic bourses on Friday, 7 November 2008. The 30-share BSE Sensex gained 230.07 points or 2.36% to 9,964.29 and the 50-unit S&P CNX Nifty rose 80.35 points or 2.78% to 2973.

Infrastructure stocks were the star performers in the week. Reliance Infrastructure (up 22.80% to Rs 560.90), GVK Power & Infrastructure (up 65.36% to Rs 18.19), IVRCL Infrastructure (up 64.17% to Rs 139.05), GMR Infrastructure (up 33.93% to Rs 67.50), and Lanco Infrastructure (up 48.48% to Rs 168.95). India’s infrastructure sector output grew 5.1% in September 2008 from a year earlier, well above 2.3% annual growth in August 2008, government data released on Friday, 7 November 2008 showed.

India�s largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) slumped 11.15% to Rs 1217.85 in the week after foreign broking house ABN Amro recommended a ’sell’ on the stock and cut its target price by whopping 38% to Rs 1,150 from Rs 1,850 earlier.

Shares from auto sector were subdued after India’s largest commercial vehicle maker by sales Tata Motors on 6 November 2008 announced closing of the commercial vehicle plant at Jamshedpur owing to a demand slump. The stock lost 7.51% to Rs 158.90

India’s largest car maker by sales Maruti Suzuki India rose 5.88% to Rs 597.65 even as total sales fell 6.21% at 64,490 units in October 2008 over October 2007. India?s largest tractor maker by sales Mahindra & Mahindra was down marginally by 0.03% to Rs 372.25. However Bajaj Auto slumped 24.53% to Rs 411.30 after October 2008 motorcycle volumes fell 34% at 1.63 lakh units against 2.48 lakh units in the same month last year.

India’s largest drug maker by sales Ranbaxy Laboratories jumped 28.89% to Rs 218.40. Japan’s No. 3 drugmaker Daiichi Sankyo Co on Friday, 7 November 2007, completed takeover of Ranbaxy Laboratories acquiring a 63.9% stake for Rs 19980 crore ($4.20 billion).

Banking stocks were boosted by the Reserve Bank of India�s initiative to prop up liquidity in the financial system and on hopes lower rates will boost lending. India�s largest private sector bank by net profit ICICI Bank rose 7.99% to Rs 431.25. India�s largest commercial bank State Bank of India rose 12.60% to Rs 1249.25. India�s second largest private sector bank by net profit HDFC Bank gained 6.34% to Rs 1088.55

Most state-run banks cut their prime lending rates (PLR) during the week. Bank of Baroda, Allahabad Bank, Central Bank of India, Oriental Bank of Commerce and Corporation Bank reduced lending rates by 75 bps to 13.25% with effect from 10 November 2008.

The Reserve Bank of India (RBI) on Saturday, 1 November 2008, unexpectedly cut its main short-term lending rate viz. the repo rate for the second time in as many weeks to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis. Besides a cut in the repo rate, the central bank took other liquidity boosting measures, including a cut banks’ cash reserve ratio (CRR) by 100 basis points to 5.5%.

The RBI also cut banks’ statutory liquidity ratio (SLR) by 100 bps to 24% of their deposits with effect from 8 November 2008. The CRR is the percentage of deposits which the banks must keep with the central bank. The CRR cut is expected to release Rs 40000 crore into the system. The SLR is the ratio of government bonds and other approved securities that banks have to hold as a percentage of their total deposits.

Telecom stocks rose on reports government will allocate spectrum for next generation wireless networks to successful bidders by the end of January 2009 after holding an auction as planned earlier in the month. Reliance Communications, the country�s second largest telecom services provider by sales rose 3.38% to Rs 228.15 whereas India as largest telecom services provider by market share Bharti Airtel was up 0.15% to Rs 650.

Metal stocks declined after recent sharp fall in metal prices on global recession worries. Sterlite Industries (down 12.77% to Rs 246.15), Tata Steel (down 9.52% to Rs 190.10), edged lower.

India as largest aluminum maker by sales, Hindalco Industries rose 0.42% to Rs 60.45 on reports the company has cleared the bridge loan taken to acquire Canada’s Novelis.

ONGC, the country�s largest state-run oil explorer by market capitalization gained 10.72% to Rs 741.60 on reports Russia has allowed the company to purchase London-listed Imperial Energy.

IT pivotals slipped on worries the US outsourcing business will be curtailed and the direct impact will be on IT sector after Barack Obama won the US presidential election. India’s third largest IT exporter by sales Satyam Computer Services lost 8.87% to Rs 277.75. India’s second largest IT exporter by sales Infosys fell 8.62% to Rs 1262.50. India’s fourth largest IT exporter by sales Wipro slipped 4.30% to Rs 260.45. India’s largest IT exporter by sales Tata Consultancy Services declined 2.40% to Rs 524.55.

Indian IT pivotals derive a lion�s share of revenues from exports to the US. Obama has strong reservations on outsourcing from the US. He had made many statements during his election speeches that he would discourage outsourcing from the US when he comes into power.

India as largest electric equipment maker by sales Bharat Heavy Electricals (BHEL) rose 9.64% to Rs 1405.10 boosted by reports it is planning to triple export orders to Rs 10300 crore by 2012 in a bid to hedge against currency fluctuations related to raw material imports.

DLF, India’s biggest realty developer by market capitalisation, surged 27.54% to Rs 280.90 even as Morgan Stanley cut price estimate on the stock by 82% to Rs 256.

Prime Minister Dr Manmohan Singh told top business leaders on Monday, 3 November 2008, that the government will take all the necessary monetary and fiscal policy measures to protect growth. The Prime Minister also said the government was working closely with other countries to ensure coordinated policy action for the containment of the global financial crisis.

Data showing rise in infrastructure sector output and positive global cues helped the domestic bourses snap losses in the preceding two trading session. The BSE Sensex rose 230.07 points or 2.36%. The barometer index breached the psychological 10,000 level many times in intraday trade though it ended below that level.

Metal stocks rose on recovery in metal prices on the London Metal Exchange. PSU banks rose on cut in lending rates. IT stocks rose as a weak rupee offset fall in American depository receipts overnight.

Data showing rise in infrastructure output offset concerns of economic slowdown triggered by productions cuts announced by commercial vehicle makers in the last two days and steel maker JSW Steel today and reduction in gross domestic product (GDP) forecast for 2009 by the International Monetary Fund. India’s infrastructure sector output grew 5.1% in September 2008 from a year earlier, well above 2.3% annual growth in August 2008, government data released earlier in the day showed.

The International Monetary Fund, or IMF, on Thursday, 6 November 2008, predicted lower growth in India and economic contractions in the US, Japan and euro region next year, calling for further interest rate cuts and fiscal stimulus. Its estimate for India’s growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of 6.9% made just a month ago. Its estimate for the country’s growth in 2008 is down 0.1% to 7.8%.

European shares edged higher as commodities stocks tracked stronger crude and metals prices and banking shares gained following interest rate cuts in the previous session. Key benchmark indices in France, Germany and UK were up by between 0.31% to 1.9%. The Bank of England slashed the key interest rate by a steep 1.5% on Thursday, 6 November 2008 and on the same day the European Central Bank cut the key rate by 50 basis points.

Bargain hunting following a 25 basis points rate cut by the central bank in South Korea on Friday, 7 November 2008, and rate cut in Europe triggered a recovery in Asian stocks from an intra-day fall. South Korea’s Kospi was up almost 4% boosted by the rate cut. Key benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by between 1.034% to 3.29%. Japan’s Nikkei average was down 3.55% with bargain hunting helping the benchmark pared losses that had taken it down over 6% earlier in the day. The rate cut in Europe were announced after Asian markets had closed on Thursday, 6 November 2008.

Trading in US index futures indicated the Dow will rise 100 points at the opening bell.

The 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29. The index rose 331.15 points at the day’s high of 10,065.37 in late trade. The index fell 121 points at the day’s low of 9,631.59 hit in early trade.

The 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973.

The BSE clocked a turnover of Rs 3447 crore today as compared to a turnover of Rs 4010.92 crore on 6 November 2008

The market recovered after a sharp slide in the past two trading sessions. From the recent high of 10631.12 on 4 November 2008 the Sensex had lost 896.90 points or 8.43% to 9734.22 on 6 November 2008. There has been a massive erosion in investors’ wealth this year. The Sensex is down 10,322.70 points or 50.88% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11,242.48 points or 53.01% below its all-time high of 21,206.77 struck on 10 January 2008.

Nifty November 2008 futures were at 2989.10, at a premium of 16.10 points as compared to spot closing of 2973. NSE’s futures & options (F&O) segment turnover was Rs 36,963.32 crore, which was lower than Rs 43,836.07 crore on Thursday, 6 November 2008.

The BSE Mid-cap index was up 1.11% to 3,355.38, while the BSE Small-cap index was up 0.51% to 3,900.10. Both the indices underperformed the Sensex.

The BSE Power index (up 4.43% to 1,777.57), the BSE Oil & Gas index (up 3.38% to 6,013.57), the BSE Metal index (up 3.18% to 5,152.33), the BSE PSU index (up 3.01% to 4,965.80), the BSE Realty index (up 2.72% to 2,342.82) outperformed the Sensex.

The BSE Auto index (up 0.5% to 2,661.53), the BSE HealthCare index (up 0.54% to 2,937.11), the BSE Consumer Durables index (up 1.29% to 2,094.87), the BSE Capital Goods index (up 1.61% to 7,635.41), the BSE Bankex (up 1.66% to 5,532.15), the BSE IT index (up 2.01% to 2,670.54), the BSE Teck index (up 2.16% to 2,085.84) and BSE FMCG index (up 2.22% to 1,968.70) underperformed the Sensex.

The market breadth turned positive later in the day from earlier weak breadth. On BSE, 1124 stocks declined while 1417 gained. 75 stocks remained unchanged.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 3.95% to Rs 1,217.85 despite reports it may delay commercial operations of its Jamnagar refinery to early 2009 as it finishes the final testing of the facility.

Reliance Communications (up 5.53% to Rs 228.15), Jaiprakash Associates (up 4.65% to Rs 87.70) and ITC (up 3.59% to Rs 174.80) were the major gainers from the Sensex pack.

Power stocks gained. NTPC, Tata Power Company, Reliance Infrastructure, Reliance Power, Power Grid Corporation of India rose by between 2.61% to 10.92%.

Metal stocks gained tracking recovery in metal prices on the London Metal Exchange. Tata Steel, Sterlite Industries, Steel Authority of India, Hindustan Zinc, National Aluminum Company rose by between 2.07% to 10.68%.

India’s largest aluminum maker by sales, Hindalco Industries spurted 6.61% on reports the company has cleared the bridge loan taken to acquire Canada’s Novelis. But steel maker JSW Steel plunged 5.18%, on production cut plan.

Shares of iron ore exporters rose on a television report that the railway freight rates for iron ore has been cut by 50% from 8 November to 31 December 2008. Sesa Goa rose 3.10% and NMDC gained 2.4%.

The reductions would be applicable for iron ore traffic loaded in South Eastern, East Coast and South Western Railways and for distances above 350 kilometer to 400 kilometer

Auto pivotals fell after commercial vehicle makers announced production cut amid falling demand for vehicles. Ashok Leyland, India’s second-biggest commercial vehicle maker by sales, fell 4.57% on a decision to cut production at its plants to three days a week until the end of 2008 because of falling demand for its vehicles.

But India’s largest commercial vehicle maker by sales Tata Motors recovered from the day’s low. The stock was down 0.16% to Rs 158.90, off the day’s low of Rs 148. Its ADR lost 3.81% overnight after the company on 6 November 2008 had announced closing of the commercial vehicle plant at Jamshedpur owing to a demand slump.

The country’s largest passenger car maker by sales Maruti Suzuki fell 0.38%. The company on 1 November 2008 said its sales in October 2008 dipped 7% at 64,490 units, against 69,415 units in the same month last year.

Shares of the two-wheeler makers were mixed. India’s largest motorbike maker by sales Hero Honda Motor rose 4.15%, and TVS Motor Company fell 1.98%. India’s largest scooter maker by sales Bajaj Auto was up 0.94%. Last month, reports quoted a senior executive in Bajaj Auto, India’s second biggest motorcycle maker by sales, as saying that it could cut production in November 2008 after the festive season.

Meanwhile, the Petroleum Secretary, R S Pandey on Thursday (6 November 2008) said the government was not considering any fuel price cut at the moment as public sector oil marketing companies are still incurring revenue loss on sale of various petroleum products.

Most of the IT stocks spurted after dismal start as a weak rupee offset slide in weak American depository receipts overnight caused by worries the US outsourcing business will be curtailed and the direct impact will be on IT sector after Barack Obama won the US presidential election early this week. India’s third largest IT exporter by sales Satyam Computer Services rose 3.16% to Rs 277.75, off the day’s low of Rs 263. Its American depository receipt (ADR) fell 7.19% overnight.

India’s second largest IT exporter by sales Infosys rose 1.15% to Rs 1262.50, off the day’s low of Rs 1205.25 even as ADR fell 10.47%. India’s fourth largest IT exporter by sales Wipro rose 2.9% to Rs 260.45 even as ADR slipped 8.56%. The stock had slipped 6.31% in previous trading session. India’s largest IT exporter by sales Tata Consultancy Services rose 4.87% to Rs 524.55 off day’s low of Rs 485.10. The stock had slipped 1.08% in previous trading session.

Obama has strong reservations on outsourcing from the US. He had made many statements during his election speeches that he would discourage outsourcing from the US when he comes into power.

Meanwhile, the Indian rupee weakened on Friday as expectations of further foreign investor outflows from the stock market weighed on sentiment. The partially convertible rupee was at 47.77/78 per dollar, 0.1 % weaker than 47.66/69 at close on Thursday.

PSU banks rose after top state-owned banks on Thursday, 6 November 2008, cut their prime lending rates (PLR). Bank of Baroda, Allahabad Bank, Central Bank of India, Oriental Bank of Commerce and Corporation Bank rose by between 2.09% to 6.21%. All of them reduced lending rates by 75 bps to 13.25% with effect from 10 November 2008.

India’s largest commercial bank State Bank of India (SBI) rose 2.79% on a decision to cut the PLR by 75 basis points (bps) with effect from 10 November 2008 and deposit rates by 25 to 50 bps across all maturities effective 1 December 2008.

India’s largest private sector bank by net profit ICICI Bank fell 0.67% as American depository receipt (ADR) lost 2.68% overnight. ICICI Bank’s chief executive K.V. Kamath said on 3 November 2008, the bank will review interest rates in the next few days.

India’s second largest private sector bank by net profit HDFC Bank rose 2.64% to Rs 1,088.55 off day’s low of Rs 1,032 even as ADR slumped 4.81% on Thursday.

India’s largest home loan lender by operating income HDFC jumped 2.64%. HDFC is yet to revise its rates, since the firm’s borrowing costs have not come down.

The Reserve Bank of India (RBI) on Saturday, 1 November 2008, unexpectedly cut its main short-term lending rate viz. the repo rate to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis.

Meanwhile, 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.

PSU OMCs rose after the Petroleum Secretary, R.S. Pandey, said, the government is not considering any fuel price cut at the moment as public sector oil marketing companies are still incurring revenue loss on sale of various petroleum products. BPCL, HPCL and Indian Oil Corporation fell by between 6.85% to 8.94%. Meanwhile, crude oil rose from a 19-month low in New York as rising stock indexes allayed concern about waning demand and a weaker dollar bolstered the appeal of commodities. Oil for December delivery climbed as much as 2.9%, to $62.50 a barrel on the New York Mercantile Exchange.

India’s largest state-run oil explorer by market capitalization ONGC fell 0.29% despite reports Russia has allowed the company to purchase London-listed Imperial Energy.

India’s largest drug maker by sales Ranbaxy Laboratories rose 0.95% recovering from earlier fall as Daiichi Sankyo Co, Japan’s No. 3 drugmaker, said on Friday it had completed the takeover of Ranbaxy Laboratories, buying a 63.9 % stake for Rs 19980 crore ($4.20 billion). Daiichi Sankyo reached an agreement with the generic drugmaker in June 2008 to buy a stake of at least 50.1% through a tender offer, the private placement of new shares and the purchase of outstanding shares from the founding family.

Plethico Pharmaceuticals was locked at the upper limit of 5% on BSE on reports the company may pick up stake in a UAE based pharma retail chain.

Alembic galloped 12.3%on BSE, on buyback plan.

Airline stocks rose on reports India’s two largest private airlines, Kingfisher Airlines and Jet Airways, are likely to cut ticket prices by up to Rs 1,000 on domestic routes by December 2008. SpiceJet, Kingfisher Airlines and Jet Airways rose by between 1.26% to 2.89%. The two carriers Kingfisher Airlines and Jet Airways are under pressure to act, as the aviation ministry wants them to pass on the benefits of a series of measures announced by the government to bail out the beleaguered industry.

Last week, oil marketing companies had announced a 17% cut in aviation turbine fuel (ATF) prices, while the government reduced customs duty on jet fuel by 5%.

Shares of fertiliser makers extended gains after the fertiliser minister said on Thursday, 6 November 2008, he expected gas supply to fertiliser units to more than triple by 2011/12 from current levels. Rashtriya Chemicals , Tata Chemicals, Chambal Fertilisers & Chemicals, GNFC, Nagarjuna Fertilizers & Chemicals and National Fertilizers were up by 2% to 5%.

United Phosphorus surged 3.62% after an interse transfer of shares took place between the promoter group at 10.3% premium to the ruling price.

Roman Tarmat rose 10%, on bagging runways upgradation order.

Suzlon Energy clocked the highest volume of 2.72 crore shares on BSE. GVK Power & Infrastructure (2.23 crore shares), Reliance Natural Resources (1.1 crore shares), Housing Development & Infrastructure (87.16 lakh shares) and Tata Tele Maharashtra (79.52 lakh shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 292.84 crore on BSE. Suzlon Energy (Rs 183.77 crore), State Bank of India (Rs 159.91 crore), Reliance Capital (Rs 151.72 crore) and ICICI Bank (Rs 123.52 crore) were the other turnover toppers in that order