Market ends in green in choppy trade

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.