Heavy selling in index pivotals ICICI Bank and Reliance Industries pulled the BSE Sensex below 14,000 mark in late trade. Sensex provisionally ended down 383.76 points. Reliance Infrastructure tumbled. The market had recovered sharply from lower level in early afternoon trade after an initial slide on improved industrial output data for July 2008 which hit the market at 12:00 IST. But the recovery proved short-lived.

The Indian market today underperformed the world boursres. Stocks rose in Asia and Europe on optimism that talks about a possible sale of troubled US investment bank Lehman Brothers would help ease the financial sector's woes.

Infosys and Reliance Infrastructure fell more than 6% each while ICICI Bank fell more than 4.5%. HDFC and DLF fell more than 3.5% each. Maruti Suzuki India rose over 3.5%.

Industrial output rose 7.1% in July 2008 from a year earlier, above the previous month's 5.4% rise, data released by the government today, 12 September 2008, afternoon showed. The figure was above market expectations of a 6.5% growth. Manufacturing production rose 7.5% in July 2008 from a year earlier.

The wholesale price index-based inflation rose 12.10% in the week ended 30 August 2008, below the previous week's annual rise of 12.34%, government data released after market hours on Thursday, 11 September 2008 showed. The annual inflation rate was 3.72% during the corresponding week of the previous year.

The BSE 30-share Sensex provisionally ended down 383.76 points or 2.68% to 13,940.53. At the day's low of 13,933.87 hit in late trade Sensex fell 390.42 points. At the day's high of 14,433.20 hit in early trade, the Sensex rose 108.91 points.

The S&P CNX Nifty was down 89.35 points or 2.08% to 4,200.95 as per the provisional figures.

The market breadth was weak on BSE with 1,880 shares declining as compared to 818 that advanced. 45 remained unchanged.

Among the 30-member Sensex pack, 27 declined while the rest gained.

The BSE Mid-Cap index fell 2.28% to 5,518.31 and BSE Small-Cap index fell 1.9% to 6,689.18.

BSE clocked a turnover of Rs 5,078 crore today 12 September 2008 compared to a turnover of Rs 4,798.08 on 11 September 2008.

India's largest private sector firm in terms of market capitalization and oil refiner Reliance Industries fell 3.78% to Rs 1,922.

Reliance Infrastructure (down 6.32% to Rs 929.30), ICICI Bank (down 4.89% to Rs 652.85), HDFC (down 3.84% to Rs 2,179.10), DLF (down 3.64% to Rs 467.90) edged lower from the Sensex pack.

Capital goods pivotals rose after the latest data showed that the capital goods sector clocked a robust 21.9% growth in production in July 2008. India's largest electric equipment maker by sales Bharat Heavy Electricals rose 1.16% to Rs 1,684. It came off from its high of Rs 1,750.

India's largest engineering and construction firm by sales Larsen & Toubro fell 1.51% to Rs 2,625. The stock came off from its high of Rs 2,700.

BSE IT index fell 4.7% to 3,803.06 and was the top loser from the sectoral indices on BSE. IT stocks declined on overnight fall in their American depository receipts (ADRs) and after foreign brokerage house UBS said a sharp and sudden appreciation of the dollar against the British pound and euro would hit IT firms' revenue in dollar terms by 1-2%. Infosys (down 5.92% to Rs 1,645.40), Satyam Computer Services (down 3.36% to Rs 407), Wipro (down 2.08% to Rs 418), Tata Consultancy Services (down 3.72% to Rs 805) edged lower.

Infosys ADR fell 5.13%, Wipro ADR lost 4.65% and Satyam Computer ADR shed 2.65% yesterday, 11 September 2008.

Maruti Suzuki India (up 3.81% to Rs 705), Hindustan Unilever (up 0.1% to Rs 247.10) edged higher from the Sensex pack.

India's largest tractor maker by sales Mahindra & Mahindra fell 2.13% to Rs 551.30. The comopany said on Thursday it has decided to transfer the logistics business to Mahindra Logistics, a wholly owned subsidiary of the company for a consideration of Rs 32 crore.

India's largest telecom services provider by sales Bharti Airtel fell rose 0.32% to Rs 778.70. It recovered from session's low of Rs 744.The company added 2.7 million users in the month of August 2008 taking its total subscriber base to 74.8 million.

US crude for October 2008 delivery rose 45 cents to $101.37 a barrel today, 12 September 2008 as the markets kept a watchful eye on the path of Hurricane Ike that could disrupt refineries and production in the United States for weeks. It lost $1.71 a barrel on Thursday, 11 September 2008 after falling to $100.10, its lowest level in 5-month in intra-day trade.

European markets were in green. France's CAC 40, Germany's DAX and UK's FTSE 100 were up between 0.87% to 1.24%.

Asian markets were trading higher today, 12 September 2008. China's Shanghai Composite, Hong Kong's Hang Seng, Taiwan's Taiwan Weighted, Japan's Nikkei, Singapore's Straits Times and South Korea's Seoul Composite were up by between 0.83% to 2.4%.

US stocks rose on Thursday, 11 September 2008, as a report that major U.S. investment bank Lehman Brothers is shopping itself to possible suitors, including Bank of America, drove a last-minute rebound in financial shares. The Dow Jones gained 164.79 points, or 1.46%, to 11,433.71. The S&P 500 index advanced 17.01 points, or 1.38%, to 1,249.05, while the Nasdaq Composite index added 29.52 points, or 1.32%, to 2,258.22.