MARKET UPDATE

MARKET UPDATE AT 1 PM ON 29 SEPTEMBER

Key benchmark indices slumped further in red in afternoon trade.Sensex

lost more than 500 points. Asian and European stocks droppedon

persistent questions on the effectiveness of the US bailoutpackage

and on continued instability in the global banking sector.The barometer

index BSE Sensex today fell below the 13,000 mark. Capital goods and

power stocks declined . ICICI Bank fell more than11% while Jaiprakash

Associates fell more than 12%. RelianceIndustries dropped. The market

breadth extremely weak as sellingwas witnessed across the board. The

US lawmakers agreeing on a $700 billion bank-rescue package andthe

House of Representatives approving the nuclear deal with Indiaover

the weekend failed to boost the investor sentiments. European markets

which opened after Indian markets were down inopening trade. France's

CAC 40, Germany's DAX and UK's FTSE 100were down between 2.53% to

2.88%. European markets fell as theBelgian, Dutch and Luxembourg

governments were forced to rescuefinancial firm Fortis over the weekend.

In addition, reportssuggest the British government will take over mortgage

lenderBradford & Bingley. Most Asian markets were trading lower today,

29 September 2008.Hong Kong's Hang Seng, Japan's Nikkei, Singapore's

Straits Times,South Korea's Seoul Composite fell between 1.26% 4.07%.