Investor sentiment remained jittery on political uncertainty ahead of state elections, uncertainty about a US Treasury plan to forgo buying bad mortgage-related investments to buy stakes in US lenders and caution ahead of a meeting of G20 political leaders. Fall in India’s exports for the first time in five years also weighed on the investor sentiment,

The market failed to sustain the rally witnessed at the start of the week caused by China’s massive economic stimulus plan. Higher-than-expected industrial production growth in September 2008 and expectation of further cut in interest rates triggered by fall of inflation to single digit, failed to avert the slide. The BSE Sensex fell in three out of the four trading sessions in the week.

The barometer index fell 578.87 points or 5.81% to 9,385.42 in the week ended Friday, 14 November 2008. The S&P CNX Nifty dipped 162.65 points or 5.47% to 2,810.35 in the week.

The BSE Mid-Cap slipped 139.30 points or 4.15% to 3,216.08 and the BSE Small-Cap index lost 135.05 points or 3.46% to 3,766.05. Both the indices outperformed the Sensex.

The barometer index BSE Sensex is down 10,901.57 points or 53.73% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11,821.35 points or 55.74% 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. FII outflow reached Rs 51,047.40 crore in calendar 2008, so far, till 12 November 2008.

Trading for the week began on a firm note as 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 surged 571.87 points or 5.74%, to close at 10,536.16 on Monday, 10 November 2008. Reduction in India’s economic growth forecast by global investment banking and securities firm Goldman Sachs failed to put brakes on the rally.

Key benchmark indices underperformed its global peers on Tuesday, 11 November 2008, as fall in India’s exports for the first time in five years in October 2008 and worries about the global economy eclipsed optimism over China’s massive $600 billion economic stimulus package. The BSE 30-share Sensex slumped 696.47 points or 6.61% to 9,839.69, in a highly volatile trade.

Key benchmark indices slumped in volatile trade on Wednesday, 12 November 2008, extending the previous day’s steep losses on political uncertainty ahead of the beginning of assembly polls in five states. The BSE 30-share Sensex was down 303.36 points or 3.08% to 9,536.33

Political uncertainty ahead of state elections, uncertainty about a US Treasury plan to forgo buying bad mortgage-related investments to buy stakes in US lenders and caution ahead of a meeting of G20 political leaders, pulled the market lower in what was a choppy trading session on Friday, 14 November 2008. The BSE 30-share Sensex was down 150.91 points or 1.58% at 9,385.42.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries slumped 5.69% to Rs 1,148.55 in the week. As per reports on 11 November 2008, the company is unlikely to meet its previously-announced commissioning schedules for two key oil and gas projects, as depressed global fuel demand, the financial market turmoil and legal challenges to its plans force it to push back deadlines.

India’s largest oil exploration firm by revenue ONGC slipped 6.48% to Rs 693.55. On Wednesday, 12 November 2008, chairman R.S. Sharma said that company will lose Rs 300 crore-Rs 400 crore annually if it followed a finance ministry directive to keep 60% of its surplus cash with state-run banks.

India’s second largest IT exporter by sales, Infosys Technologies fell 3.53% to Rs 1217.90 in the week. Britain’s BT Group, one of its major clients, announced cost cutting measures. On Thursday (13 November 2008), the BT group announced 10,000 job cuts and a plan to trim the cost of its pension scheme just as it posted better-than-expected second-quarter earnings and revenues.

India’s second largest telecom services provider by sales Reliance Communications declined 3.68% to Rs 219.75 in the week. As per repots on 14 November 2008, the company is considering bidding for Iran’s third mobile phone service license. Reliance Communications (RCom) will compete with firms from Russia, Turkey and Malaysia for the tender for which Iran will calls bids shortly, reports suggest.

Shrugging off the global financial sector crisis, GSM-based cellular services providers added a record 7.7 million mobile users in October 2008. Total GSM mobile users at the end of October 2008 stood at 241.4 million, up 3.3% from 233.7 million in September 2008.

India’s largest engineering and construction firm by sales Larsen & Toubro slumped 9.12% to Rs 791.50. The company’s consortium on 10 November 2008 bagged a large order worth Rs 2,460 crore.

ICICI Bank (down 8.19% to Rs 395.95), HDFC Bank (down 7.17% to Rs 1,011.60), State Bank of India (down 6.34% to Rs 1,170.10), Satyam Computer Services (down 5.8% to Rs 261.65), Wipro (down 7.51% to Rs 240.90), edged lower from the Sensex pack.

India’s second largest steel producer by sales Steel Authority of India lost 18.59% to Rs 68.75. As per reports on 14 November 2008 the company may miss the 2010-deadline to complete its expansion and modernisation programme to enhance production capacity from 15 million tonne to over 26 million tonne with an investment of Rs 54,000 crore.

India’s second largest steel producer by sales Steel Authority of India lost 18.59% to Rs 68.75. As per reports on 14 November 2008 the company may miss the 2010-deadline to complete its expansion and modernisation programme to enhance production capacity from 15 million tonne to over 26 million tonne with an investment of Rs 54,000 crore.

Inflation, as measured by the wholesale price index, declined sharply to 8.98% in the week ended 1 November 2008 from 10.72% in the previous week mainly due to sharp drop in oil prices

Industrial production rose 4.8% in September 2008 much higher than a revised 1.4% growth in August 2008 government announced on Wednesday, 12 November 2008. The cumulative increase in industrial production during April-September 2008 period was 4.9% as against 9.5%, during the corresponding period last year.

The government may consider cutting fuel prices if global crude prices and the rupee stabilise, the oil minister, Murli Deora, on, 12 November 2008, said.

India’s excise duty collections fell by 8.7% to Rs 9399 crore in October 2008. Customs duty collections also eased by 0.9% to 9265 crore during this period. As a result, the total customs and excise duty collections fell by 5% to Rs 18664 crore in October 2008.

Goldman Sachs on 10 November 2008, cut forecast on India’s GDP growth for the year ending March 2009 (FY 2009) to 6.7% from 7.5% 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.

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.

Power Secretary Anil Razdan on 10 November 2008, said the government has deferred bidding for the 4,000 megawatt power plant at Tilaiya in eastern India by a month because of the credit crisis. Nine companies had qualified to bid for the project and six to seven of them, including the Tata group, had requested the government to postpone the bidding.

Polling for assembly elections in Chhattisgarh began on Friday, 14 November 2008. Chhattisgarh is the first state out of a total of five states in which polling is being held for assembly elections. These polls are widely seen as a test of the popularity of the country’s main political parties viz. the Congress and the BJP, ahead of national elections in the first half of calendar year 2009.

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.

Stocks fell sharply last week amid uncertainty about the future of the US economy. Wary investors continued to unload shares across-the-board as uncertainty persisted over the $700 billion US financial sector bailout plan. The barometer index BSE Sensex hit 2-year low during the week.

The US Senate on Wednesday, 1 October 2008, passed the government’s financial rescue plan after the House of Representatives rejected it in its original form. The House is expected to vote on the revised bill on Friday, 3 October 2008. Under the plan, the US Treasury would buy illiquid assets held by financial institutions, in the hope of restoring confidence and thawing credit markets vital to the wider economy.

The BSE 30-share Sensex fell 575.86 points or 4.40% to 12,526.32 in the week ended Friday, 3 October 2008. The S&P CNX Nifty fell 166.95 points or 4.18% to 3818.30. The BSE Mid-Cap index declined 5.32% at 4,677.80 and BSE Small-Cap index declined 6.76% at 5,465.40.

Stocks fell across the board on Monday, 29 September 2008, on persistent questions on the effectiveness of the US bailout package and on continued instability in the global banking sector. The BSE 30-share Sensex plunged 506.43 points or 3.87% to 12,595.75. The S&P CNX Nifty fell 135.20 points or 3.39% to 3,850.05.

The key benchmark indices snapped last three days losses to post decent gains on Tuesday, 30 September 2008. The BSE 30-share Sensex jumped 264.58 points or 2.1% to 12,860.43. The S&P CNX Nifty rose 71.15 points or 1.85% to 3,921.20.

The key benchmark indices extended previous session’s gains on Wednesday, 1 October 2008, as investors bet US lawmakers would approve a bailout package for the US financial sector. The BSE 30-share Sensex rose 195.24 points or 1.52% to 13,055.67. The S&P CNX Nifty rose 29.55 points or 0.75% to 3,950.75. The market remained shut on Thursday, 2 October 2008, on account of Gandhi Jayanti.

Stocks took a beating on Friday, 3 October 2008. Investors were jittery ahead of the US House of Representatives’ vote on a revised $700 billion financial rescue package submitted by the Senate. The BSE 30-share Sensex lost 529.35 points or 4.05% to 12,526.32. The S&P CNX Nifty shed 132.45 points or 3.35% to 3818.30.

India’s second largest software exporter by sales Infosys Technologies slipped 3.92% to Rs 1390.95 on reports Axon, the British information technology company, has decided to accept the HCL Technologies’ counter offer of 650 pence a share

India’s largest drug maker by sales Ranbaxy Laboratories fell 3.14% to Rs 263.85. As per reports, the US Department of Justice may withdraw the motion against the company next week in a local court in the US.

Diversified firm Videocon Industries fell 3.62% to Rs 206.20. A consortium that includes Videocon Industries and Bharat PetroResources has struck oil at a block in Brazil. Videocon, along with Bharat PetroResources, which is owned by state-run refiner Bharat Petroleum Corp, holds 25% interest in the offshore block, located in the Campos Basin in Brazil.

ICICI Bank, India’s largest private sector bank by market capitalisation, slumped 10.11% to Rs 504.50. The bank assured investors that it was well-capitalised after a number of ICICI Bank ATMs reported unusual increase in cash withdrawal between 29 - 30 September 2008 in some parts of the country.

Power plants developer KSK Energy Ventures spurted 3.62% to Rs 217.60. As per recent reports, the company has aggressive expansion plans of increasing the current operational capacity of 144 megawatt to 9,137 megawatt by 2013.

India’s largest private firm in terms of market capitalization Reliance Industries fell 10.20% to Rs 1760.95. The company started production of crude oil at KG-D6 block of the Krishna Godavari basin on 17 September 2008. The field will initially produce about 5,000 barrels of crude per day and is expected to reach its peak production of 5,50,500 barrels of crude per day over the next six to eight quarters.

The Indo-US nuclear deal on Thursday, 2 October 2008 secured the approval of the US Senate which overwhelmingly voted a bill rejecting all the killer amendments and paving the way for its implementation.

Inflation based on the wholesale price index rose 12.14% in 12 months to 13 September 2008 government data released on 25 September 2008, showed.

Foreign institutional investors (FIIs) sold shares worth Rs 199.70 crore on 1 October 2008. They sold shares worth Rs 36,991.70 crore in the calendar year 2008 so far (till 1 October 2008). Mutual funds bought shares worth Rs 147.80 crore on 1 October 2008.

Key benchmark indices suffered a sever setback mirroring weak global imarket and amid impasse over the proposed $700 billion bailout deal for the US financial sector. Sustained selling by foreign institutional investors weighed on the market sentiment. The market posted losses in four out of five trading sessions. The S&P CNX Nifty fell below the psychological 4,000 level. Among index pivotals Ranbaxy Laboratories and Hindalco Industries hit 52-week lows on BSE.

A financial crisis engulfed the global markets earlier this month with the US investment banking giant Lehman Brothers filing for bankruptcy, Merrill Lynch being bought over by the Bank of America and the US government bailout of American Insurance Group (AIG) for $85 billion in turn of 80% stake.

On Thursday, 25 September 2008, JPMorgan Chase acquired the banking assets of Washington Mutual after the troubled thrift was seized by federal regulators, marking the biggest bank failure in the United States.

The barometer index BSE Sensex lost 940.14 points or 6.69% to settle at 13,102.18 in the week ended Friday, 26 September 2008. The S&P CNX Nifty shed 260 points or 6.12% at 3985.25 in the week.

The BSE Mid-Cap index lost 287.96 points or 5.50% to 4,940.82 in the week ended Friday, 26 September 2008. The BSE Small-Cap index slipped 354.21 points or 5.69% to 5,861.78 in the week.

The BSE Sensex is down 7184.84 points or 35.41% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 8104.59 points or 38.21% below its all-time high of 21,206.77 struck on 10 January 2008.

Trading for the week started on a subdued note as rise in oil prices weighed on the market sentiments on Monday, 22 September 2008. The BSE 30-share Sensex fell 47.36 points or 0.34% to 13,994.96 and the S&P CNX Nifty fell 22.20 points or 0.52% to 4223.05, on that day.

Key benchmark indices suffered sharp losses on Tuesday, 23 September 2008, mirroring fall in global stocks on uncertainty about the potency of the US government’s $700 billion bank bailout. The BSE 30-share Sensex was down 424.65 points or 3.03% to 13,570.31 and the S&P CNX Nifty fell 96.15 points or 2.28% to 4,126.90, on that day.

Domestic bourses saw a relief rally on Wednesday, 24 September 2008, posting decent gains to snap two-day losses. The BSE 30-share Sensex rose 122.21 points or 0.9% to 13,692.52 and the S&P CNX Nifty gained 34.35 points or 0.83% to 4,161.25, on that day.

On Thursday, 25 September 2008, key benchmark indices ended volatile session in the red. The BSE 30-share Sensex shed 145.34 points or 1.06% to 13,547.18 and the S&P CNX Nifty was down 50.70 points or 1.22% to 4110.55, on that day.

Indices tumbled on Friday, 26 September 2008, as Washington Mutual’s failure and uncertainty over the fate of the US government’s $700 billion rescue plan for the financial sector haunted investor sentiment. First-time jobless claims in the US rose to their highest count in seven years pointing to a slow down. The BSE 30-share Sensex lost 445 points or 3.28% to 13,102.18 and the S&P CNX Nifty fell 125.30 points or 3.05% to 3,985.25, on that day.

Foreign institutional investors FIIs have been consistently pressing sales to pull out their investments from India and other emerging markets in an attempt shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8,061 crore (till 25 September 2008). FII outflow reached Rs 36,574.90 crore in calendar 2008.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) lost 4.43% at Rs 1960.90. Reliance Industries (RIL) began production of crude oil at KG-D6 block of the Krishna Godavari basin on 17 September 2008, the company said on 22 September 2008. RIL holds 90% participating interest in the block while the balance is being held by Niko Resources.

Sterlite Industries (India) fell 4.36% to Rs 447.20. The company’s parent Vedanta Resources dropped a restructuring plan. As per a restructuring plan proposed earlier, the Vedanta group was to create three units focused on commodities: copper, zinc and lead; aluminium and energy; and iron ore.

India’s largest drug maker by sales Ranbaxy Laboratories tumbled 23.67% at Rs 272.40 on reports the Canadian drug regulator, Health Canada, issued a notice to Ranbaxy saying it will be particularly cautious about drug marketing applications from Ranbaxy after the US drug regulator blocked the sale of more than 30 generic medicines made in two factories by the company. The stock hit a 52-week low of Rs 269.05 on 26 September 2008.

Banking shares were hard hit on fears local banks may reportedly suffer losses on their exposure to the US financial giants that collapsed recently. ICICI Bank (down 10.64% at Rs 561.25), HDFC Bank (down 4.12% at Rs 1245.70), and State Bank of India (down 8.33% at Rs 1434.20), dipped.

Real estate heavyweights were not spared either. India’s largest real estate developer in terms of market capitalisation DLF lost 13.45% to Rs 369.50. Unitech, the country’s second largest real estate developer in terms of market capitalisation fell 30.59% to Rs 111.05, after sliding to a 52-week low of Rs 109.10 on 26 September 2008.

India’s largest aluminium producer Hindalco Industries slipped 12.19% at 99.10 after hitting a 52-week low of Rs 98.50 on 26 September 2008. The company’s Rs 5,050 crore rights share offering for subscription Monday, 22 September 2008. The sale in a ratio of three shares for every seven held at Rs 96 a share will close on 10 October 2008. The company aims to use the funds to repay a bridge loan it had taken to buy Canada’s Novelis in 2007.

Software firms fell on lingering concerns about the economic prospects for the United States, their biggest export market. Satyam Computer (down 13.01% to Rs 321.95), Infosys Technologies (down 10.85% to Rs 1447.10), Wipro (down 17.54% to Rs 343.75), slipped. India’s largest software exporter by sales TCS lost 11.69% at Rs 676.45 after hitting a 52-week low of Rs 666.20 on 26 September 2008.

India’s largest state-run oil explorer Oil & Natural Gas Corporation (ONGC) dropped 3.45% to Rs 1035.10. As per reports, ONGC Videsh (OVL), the overseas investment arm of ONGC, may take a $1 billion short-term loan to partly fund the $2.8 billion acquisition of London Stock Exchange-listed Imperial Energy.

Inflation remained steady, the latest data showed. Inflation based on the wholesale price index rose 12.14% in 12 months to 13 September 2008, unchanged from the previous week’s annual rise, government data released after trading hours on Thursday, 25 September 2008, showed. Inflation for the week ended 19 July 2008 was revised upwards to 12.54% from 11.98%.

On 22 September 2008 the Indian government eased overseas borrowing rules for infrastructure companies, increasing the amount they can bring in to $500 million from $100 million. The ceiling on borrowing by infrastructure firms has been raised to $500 million a year from the exiting $100 million a year

The domestic market recovered all the losses posted earlier in the week as the global stocks witnessed a fresh lease of life on Friday, 19 September 2008, after US Treasury Secretary Henry Paulson proposed to congressional lawmakers a proposal that would create an entity to deal with the billions of dollars of bad debt still choking the financial system.

A deep financial crisis engulfed the global markets eariler in the week when the US investment banking giant Lehman Brothers filed for bankruptcy, Merrill Lynch was bought over by Bank of America in a distress sale and the world’s largest insurer AIG had to seek US government help to thwart an imminent collapse.

The barometer index BSE Sensex rose 41.51 points or 0.3% to settle at 14,042.32 in the week ended Friday, 19 September 2008. The S&P CNX Nifty gained 16.80 points or 0.39% at 4,245.25 in the week.

The BSE 30-share Sensex is down 6,244.67 points or 30.78% in calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7,164.45 points or 33.78% away from its all-time high of 21,206.77 struck on 10 January 2008.

The BSE Mid-Cap index fell 308.36 points or 5.57% to 5,228.78 in the week ended Friday, 19 September 2008. The BSE Small-Cap index slipped 495.55 points or 7.38% to 6,215.99 in the week.

BSE Realty index (down 12.59% to 4,102.64), BSE Oil & Gas index (up 3.86% to 9,468.42), BSE IT index (down 3.68% to 3,666.75),), BSE Power index (down 0.66% to 2,529.79), BSE Metal index (down 7.79% to 10,033.59), BSE Capital Goods index (down 0.82% to 11,740.07), BSE Auto index (up 0.16% to 3,958.25) underperformed Sensex in the week. BSE Bankex outperformed the Sensex rising 1.15% to 7,109.88 in the week.

The Sensex lost 469.54 or 3.35% at 13,531.27 on Monday, 15 September 2008. Bears ruled the roost on the bourses for the fifth consecutive day after US investment bank Lehman Brothers filed for bankruptcy protection, making it the largest and highest-profile casualty of the global credit crisis. Nonetheless, news that China’s central bank has cut interest rates helped the domestic bourses cut steep intra-day losses.

The BSE 30-share Sensex slipped 12.47 points or 0.09% at 13,518.80 on Tuesday, 16 September 2008. Buying in index pivotals coupled with short covering after five straight days of fall helped key benchmark indices erase sharp early losses in highly choppy session. Higher Dow & Nasdaq and crude oil at 7-month low also aided the intra-day rebound.

The BSE 30-share Sensex lost 255.90 points or 1.89% at 13,262.90 on Wednesday, 17 September 2008. Intense selling pressure in key index pivotals dragged the key benchmark indices lower in volatile trade. ICICI Bank shed over 4.5% and Reliance Industries shed over 3%.

The BSE 30-share Sensex rose 52.70 points or 0.4%, to close at 13,315.60 on Thursday 18 September 2008. A coordinated effort from global central banks to ease a funding squeeze in money markets helped the key benchmark indices reverse sharp early losses and end in green. A $21.7-billion deal by British bank Lloyds TSB to prevent another UK victim of the credit crisis also helped ease investor jitters after US stocks hit a three-year low on Wednesday, 17 September 2008.

The BSE 30-share Sensex jumped 726.72 points or 5.46% to 14,042.32 on Friday, 19 September 2008. Frenzied buying in battered index pivotals along with short covering triggered a solid rally in the key benchmark indices. Markets across the globe rallied on hopes of a more comprehensive US government approach in taming the global credit crisis.

India’s largest private sector bank in terms of net profit ICICI Bank fell 3.79% to Rs 628.10 in the week. The bank’s chief executive officer K V Kamath said in a media interview on Friday, 19 September 2008, that the bank is an extremely healthy institution and has ample capital. Kamath further added that the Indian banks are in a different position, and ICICI Bank being an Indian bank with limited exposure to the global market place, a strong balance sheet and a strong capital adequacy position is different from a global bank.

India’s largest oil exploration firm by sales Oil & Natural Gas Corporation gained 4.8% to Rs 1,072.10. Reports on 19 September said the company would invest Rs 19,338 crore in oil and gas hunt during the current fiscal year, 10% higher than last year. On 16 September company said it has agreed to give Rocksource ASA, a Norwegian company, 10% participating interest in deep water block in the eastern offshore.

India’s largest cement manufacturer in terms of annual production capacity ACC rose 2.45% to Rs 605. The company said on 18 September 2008 it proposes to delist the global depositary shares that are presently listed in the London stock exchange.

India’s largest IT exporter by sales Tata Consultancy Services declined 5.22% to Rs 766. The company said on 17 September 2008 it had got a five-year application management contract in Sweden.

Tata Power Company rose 2.46% to Rs 1,027.30. The company said on 117 September 2008 it has submitted a bid for setting up four hydroelectric projects in Himachal Pradesh with a total capacity of 1,125 megawatts.

India’s largest drug maker by sales Ranbaxy Laboratories slumped 21.39% to Rs 356.85. The reports on 17 September 2008 said the US government has banned more than 30 generic drugs made by the company citing poor quality in two of its Indian factories.

India’s largest commercial bank State Bank of India surged 3.46% to Rs 1564.60. The bank paid 48% higher advance tax at Rs 1,560 crore in Q2 September 2008 over Q2 September 2007.

India’s third largest IT exporter by sales Satyam Computer Services declined 8.97% to Rs 370.10 The company said on Monday, 15 September 2008, it has bagged a SAP implementation contract from Oman-based Khimji Ramdas LLC.

India’s largest car maker by sales Maruti Suzuki India rose 5.39% to Rs 74.65. As per reports on 15 September 2008 the company may sell a million units in the domestic market within the next two years. A newspaper report quoted Shinzo Nakanishi, Maruti’s managing director as saying that Maruti is on track to sell a million units in the domestic market within the next two years besides exporting another two lakh units. This, despite the current downturn and the impending launch of low-cost cars such as the Tata Nano.

Infosys (down 1.23% to Rs 1,623.85), Wipro (down 0.69% to Rs 416.85), Reliance Communications (down 4.37% to Rs 374.05) edged lower from the Sensex pack

Tata Motors (up 2.67% to Rs 422.85), Reliance Industries (up 6.24% to Rs 2,051.85) edged higher from the Sensex pack.

National Stock Exchange (NSE) on Tuesday, 16 September 2008, said there were no outstanding open positions/settlement obligations of Lehman Brothers Securities currently in the cash market segment and derivatives segment of NSE.

Inflation based on the wholesale price index rose 12.14% in 12 months to 6 September 2008, marginally above the previous week’s annual rise of 12.10%, data released by the government on 18 September 2008, evening showed.

Crude oil for October 2008 was hovering at $97.88 a barrel on the New York Mercantile Exchange. It had fallen to as low as $90.51 earlier in the week, continuing an almost steady decline since hitting a record $147.27 on 11 July 2008.

India Inc’s top 20 taxpayers showed mixed signals, with almost 35% paying lower advance tax in September this year. 15 September 2008 was the last date for payment of the second installment of advance tax.