Market tumbles on US financial sector jitters

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.