Panic grips bourses

A global sell-off triggered the biggest weekly fall for Indian indices since 1990. Fears the deepening credit crisis will push the global economy into recession, rattled stock markets across the globe. Back home, weak industrial output data added to the gloom on Friday, 10 October 2008.

The Reserve Bank of India (RBI)'s steep cut in cash reserve ratio twice in the week failed to soothe investors nerves.

The BSE 30-share Sensex slumped 1,998.47 points or 15.95% to 10,527.85 in the week ended Friday, 10 October 2008. The S&P CNX Nifty was down 538.35 points or 14.09% to 3279.95 in the week.

The BSE Mid-Cap index was down 21.42% at 3,676. The BSE Small-Cap index was down 20.31% at 4,355.45. Both the indices underperformed the Sensex.

The key benchmark indices extended steep losses of the previous trading session on 6 October 2008 as stocks fell across the globe after global financial crisis deepened. The BSE 30-share Sensex lost 724.62 points or 5.78% to 11,801.70. The S&P CNX Nifty was down 215.95 points or 5.66% to 3,602.35.

The key benchmark indices ended mixed on a highly volatile day of trade on 7 October 2008. The BSE 30-share Sensex lost 106.46 points or 0.9% to 11,695.24. The S&P CNX Nifty was up 4.25 points or 0.12% to 3,606.60.

Institutional buying and short covering helped the market stage a strong rebound from lower level on 8 October 2008. The BSE 30-share Sensex lost 366.88 points or 3.14% to 11,328.36. The S&P CNX Nifty was down 73.25 points or 2.03% to 3,533.35. The market was closed on 9 October 2008 on account of a national holiday.

Markets ended with heavy losses on 10 October 2008 in line with other global markets on worries that the financial crisis will lead to a global recession. The BSE Sensex closed at 10,527.85, down 800.51 points or 7.07% for the day. NSE's Nifty ended at 3279.95, down 233.70 points or 6.65%.

India’s largest private sector bank by net profit ICICI Bank slumped 27.83% to Rs 364.10, lowest in almost four years. The company clarified to the media that it had adequate liquidity. A finance ministry official said Indian banks were well capitalised and the ministry did not see specific problem with ICICI Bank

India’s largest private sector company by market capitalization and oil refiner Reliance Industries slipped 13.29% to Rs 1,527 in the week. The promoters of Reliance Industries converted 12 crore warrants into an equal number of shares. Post-transaction, the promoter group holds 49% stake in the company, with 52% voting rights. This involves an infusion of around Rs 15,142 crore into the company. The shares have a lock-in period of three years.

India’s largest electric equipment maker by sales Bharat Heavy Electricals declined 14.09% to Rs 1345.85. Bharat Heavy Electricals and Nuclear Power Corporation of India are reportedly in talks with foreign firms Siemens, Alstom and GE for a third partner in their planned joint venture to set up nuclear power projects in India.

India’s largest oil exploration firm by revenue Oil and Natural Gas Corporation fell 10.18% to Rs 915.85. The company will shortly tie up with Uranium Corporation of India for exploring and mining the fissile material, suggest reports.

India’s largest drug maker by sales Ranbaxy Laboaratories spurted 10.82% to Rs 292.40. The US Department of Justice withdrew a motion against the drugmaker for allegedly bringing adulterated and misbranded medications into the United States.

India’s largest commercial vehicle maker by sales Tata Motors fell 11.87% to Rs 291.45. The company, on 7 October 2008, signed an agreement with Gujarat government to make the Nano car there days after the company pulled out of West Bengal.

India's second largest software exporter by sales Infosys Technologies fell 11.81% to Rs 1226.70. The company revised its dollar revenue guidance for the year ending March 2009 downwards to reflect the current economic situation and the drastic depreciation of major global currencies against the US dollar.

The Reserve Bank of India on 10 October 2008 announced a 100 basis point cut in the cash reserve ratio (CRR), the proportion of deposits that banks must keep with the central bank, in addition to a 50 basis point reduction announced on 6 October 2008, to boost liquidity.

India's industrial growth slumped to 1.3% in August this year, compared to a 10.9%t growth in August 2007. Manufacturing production rose 1.1% in August 2008 from a year earlier. Industrial output rose 8.1% in fiscal 2007/08 (April-March), compared with 11.6% growth in 2006/07.

India's inflation rose 11.8% in the week ended 27 September 2008, down from 11.99% in the previous week ended 20th September 2008.

The government on 7 October 2008, added mining, exploration and refining to its definition of the infrastructure sector. These three sectors will be added to the list which includes power, telecom, railway, roads, sea ports and airports, industrial parks, and urban infrastructure.