MARKET UPDATE

MARKET UPDATE AT 11AM 0N 21AUGUST

Local benchmark indices are headed for a volatile trading

session today, 21 August 2008 ahead of the release of

inflation data for the year through 9 August 2008. The

data will be released after trading hours today, 21 August

2008. Global cures were mixed. Inflation as measured by

wholesale price index rose 12.44% in the week to 2 August

2008, a 16-year high propelled by rise in the cost of pulses,

fruits, spices and aviation turbine fuel. Inflation is expected

to accelerate further after the Prime Minister Manmohan

Singh's cabinet on 14 August 2008 approved an average

21% salary increase for about 50 lakh government

employees. The higher wages will cost the government

Rs 3.38 lakh crore this year. Another key event is the

Nuclear Suppliers Group (NSG) meet scheduled today,

21 August 2008. The United States is set to push the

45-nation Nuclear Suppliers Group (NSG) to agree on

a landmark nuclear deal with India despite objections

at home and reservations abroad. Light, sweet crude

for September delivery rose 45 cents to $114.98 a

barrel yesterday, 20 August 2008, on the New York

Mercantile Exchange (NYMEX), on fresh supply

concerns after key producer Venezuela indicated

it could ask organisation of petroleum exporting

countries (OPEC) to cut output. Asian markets

were trading lower today, 21 August 2008.

China's Shanghai Composite fell 1.44% or 36.36

points at 2,486.91, Japan's Nikkei slipped 0.35% or

44.56 points at 12,807.13, Hong Kong's Hang Seng

plunged 1.48% or 309.44 points at 20,621.82, Taiwan's

Taiwan Weighted tumbled 1.12% or 78.95 points at

6,961.95, Singapore's Straits Times was down 0.70%

or 19.31 points at 2,732.44, and South Korea's Seoul

Composite lost 1.21% or 18.65 points at 1,522.06.