Sensex plunges more than 500 pts for the week

The Sensex plunged to 53%, falling to four digits for the first time in more than two years on concerns of a sharp global economic slowdown and sluggish corporate earning. Bearish sentiment in global markets and heavy selling by FIIs drove many blue chips to all- time lows.

In nine months after hitting its all-time peak of 21,206.77 on January 10, 2008, the index dipped below 10,000 in more than two years. It had taken 21 months for the Sensex to touch the 20,000 level from the 10,000 level.

A series of measures announced by the government and the Reserve Bank of India failed to check rising capital outflow by foreign funds. Even inflation numbers did not helped.

The wholesale price index (WPI) Inflation declined further to 11.44% for the week ended Oct. 4, 2008, as compared to 11.80% in the week before due to moderation in the prices of essential commodities and also on account of falling crude oil prices. Government`s fiscal and monetary measures have helped to moderate the rising prices.

In an effort to pump liquidity into the global crisis stricken market, the Reserve Bank of India (RBI) decided to slash Cash Reserve Ratio (CRR) further by 100 basis points to 6.5% from the current level of 7.5%. This cut in CRR was made to inject additional liquidity into the system of the order of Rs 400 billion.

The 30 share index, Sensex plunged 552.5 points, or 5.25%, to 9,975.35 in the week ended Oct. 17, 2008. On the other hand, the broad based NSE Nifty plunged 205.6 points, or 6.27%, to 3,074.35 in the same period.

Mid-cap stocks dropped 131.16 points, or 3.57%, to 3,544.84 in the week. While small-cap shares plunged 187.59 points, or 4.31%, to 4,167.86 during the week.

Major gainers over the week in the sectoral indices were Realty which gained 0.07%, FMCG rose (0.08%), HC climbed (0.13%), IT went up (1.82%), and TECk rose (2.08%).

Among major losers in the sectoral indices over the week, Metal dropped 11.32%, Oil & Gas fell 10.9%, Capital Goods lost 9.29%, Power declined 7.7%, and PSU went down 5.43%.

Results:

Satyam, global consulting and IT services company, registered a substantial gain in consolidated net profit in the quarter ended September 2008. During the quarter, the profit of the company climbed 41.98% to Rs 5,808.50 million from Rs 4,090.90 million in the same quarter previous year. Consolidated total income for the quarter rose 35.31% to Rs 28,988.70 million compared with Rs 21,422.60 million in the prior year period.

NIIT Technologies, provider of services in application development on consolidated basis reported a rise of 7% on year on year (Y-o-Y) basis for the quarter ended September 2008. The net profit for the quarter stood at Rs. 367 million as compared to Rs 344 million in the previous year`s same quarter. The revenues were Rs 2587 million as against Rs 2,299 million for quarter ended September 2007, a growth of 13% on Y-o-Y basis.

Biocon, integrated healthcare company delivering biopharmaceutical solutions, registered a sharp fall of 53.64% in the consolidated net profit in the quarter ended September 2008. During the quarter, the profit of the company climbed 32.25% to Rs 250.20 million from Rs 539.70 million in the same quarter previous year. Consolidated total income for the quarter jumped 63.17% to Rs 4,577.30 million compared with the prior year period.

Larsen & Toubro (L&T), India`s largest engineering and construction conglomerate, registered a substantial rise in its standalone net profit for the quarter ended September 2008 driven by strong sales growth. During the quarter, the profit of the company climbed 32.25% to Rs 4,602.60 million from Rs 3,480.20 million in the same quarter previous year. Total income for the quarter jumped 41.99% to Rs 78,422.60 million, when compared with the prior year period.