Friday saw the Sensex falling more than 2% mainly due to decline of IT stocks. The fall is surprising, considering the rupee is depreciating against the dollar.

When the rupee weakened and closed at 45.72 to the dollar, BSE IT became the biggest index loser on Friday as it saw a fall of 4.60 per cent.

Mr Gaurav Dua, Head of Research, Sharekhan Ltd, reported, “It is the rupee’s recent appreciation against the euro and the pound which will have a negative impact on the Indian GAAP numbers of IT companies. To make matters worse, the US dollar has been appreciating against the euro and the pound, and when revenues billed in these currencies are consolidated under US GAAP, they will show a dip.”

Tokyo - Tokyo stocks gained ground early Wednesday on the US Federal Reserve's announcement to help struggling AIG insurance company.

The benchmark Nikkei 225 Stock Average surged 241.06 points, or 2.08 per cent, to 11,850.78.

The broader Topix index was also up 14.4 points, or 1.29 per cent, to 1,131.97.

The market sentiment improved after the US Federal Reserve announced that it will lend up to 85 billion dollars to AIG to prevent it from falling into bankruptcy.

Washington - The US Federal Reserve Board late Tuesday announced that it would lend up to 85 billion dollars to embattled insurance giant American International Group (AIG).

In a move to calm financial markets fearing a possible second major Wall Street bankruptcy this week, the Fed engineered an AIG bailout through a two-year loan that gives the government a stake of 79.9 per cent in the conglomerate.

"The board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth, and materially weaker economic performance," the Federal Reserve said in a statement.

Taipei - Taipei stocks reboun

Tokyo

New York - Embattled insurance giant American International Group (AIG) will receive a government loan of 85 billion dollars to give the conglomerate time to sell off assets to avoid bankruptcy, business news channel CNBC reported late Tuesday.

Citing unnamed sources, the broadcaster said that the federal government would receive a state of 80 per cent in AIG, in exchange for the bridge loan.

Remaining AIG stockholders would lose most of their equity in the deal, CNBC reported.

The insurer, facing a possible bankruptcy filing as early as Wednesday, is seeking help through the Federal Reserve, the US central bank.