The 45-nations Nuclear Supplier Group (NSG) on 6 September 2008, lifted a 34-year-old embargo on nuclear trade with India. The NSG's acceptance of the US proposal to drop a ban on nuclear trade with India will now put the Indo-US nuclear deal on the fast track.
However, the nuclear deal still needs to be ratified by the US Congress before it could take force. The Congress must act before adjourning in late September 2008 for US presidential elections. If that does not happen, the deal could be left to an uncertain fate under a new US administration that takes office next year.
The 30-share BSE Sensex shed 483.02 points or 3.33% to 14,000.81 in the week ended Friday, 12 September 2008. The S&P CNX Nifty fell 123.85 points or 2.84% to 4228.45.
The BSE Mid-cap index declined 216.58 points or 3.76% to 5,537.14. The BSE Small-cap index slipped 193.68 points or 2.80% to 6,711.54.
Key benchmark indices surged on Monday, 8 September 2008, after the 45-nations Nuclear Supplier Group (NSG) on Saturday, 6 September 2008, lifted a 34-year-old embargo on nuclear trade with India. Strong Asian and European markets, too, supported the domestic bourses. The BSE 30-share Sensex jumped 461.14 points or 3.18% at 14,944.97. The S&P CNX Nifty jumped 130 points or 2.99%, to settle at 4482.30.
On 9 September 2008, the key benchmark indices ended a choppy session lower weighed down by weak Asian markets. The BSE 30-share Sensex declined 44.21 points or 0.3%, to settle at 14,900.76. The S&P CNX Nifty slipped 13.60 points or 0.3%, to end at 4468.70.
Weak global markets weighed heavily on the domestic bourse on 10 September 2008. Nevertheless, the key benchmark indices cut losses in late trade led by recovery in banking stocks. Volatility was high throughout the session. The BSE 30-share Sensex slipped 238.15 points or 1.6%, to settle at 14,662.61. The S&P CNX Nifty slipped 68.45 points or 1.53% at 4400.25.
Bears ruled the roost for the third day in a row on 11 September 2008. Weak global markets triggered fall on the domestic bourses on that day. The market remained weak throughout the trading session. The BSE 30-share Sensex lost 338.32 points or 2.31% to 14,324.29. The S&P CNX Nifty slipped 109.95 points or 2.5% to 4,290.30.
On 12 September 2008, heavy selling in index pivotals ICICI Bank and Reliance Industries pulled the BSE Sensex below 14,000 mark in late trade. The BSE 30-share Sensex ended down 323.48 points or 2.26% to 14,000.81. The S&P CNX Nifty slipped 61.85 points or 1.44% to 4228.45.
India's largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) slumped 7.11% to Rs 1931.40 in the week. As per reports, the Prime Minister's Office (PMO) may recommend levy of export tax or even ban petroleum product exports from Reliance's export oriented refineries in Jamnagar.
India's largest cellular services provider in terms of market capitalisation Bharti Airtel fell 3.15% to Rs 778.70.
India's largest aluminium and copper maker by sales Sterlite Industries plunged 17.13% to Rs 487.10. Sterlite Industries on Tuesday, 9 September 2008, said its parent company, Vedanta Resources PLC approved a restructuring program of the group's businesses. Under the scheme, Sterlite will demerge its aluminium and energy businesses to Madras Aluminium which will be later renamed Sterlite Aluminum. Sterlite Industries shareholders would get seven shares in Madras Aluminium for every four shares held as part of a restructuring. Madras Aluminium jumped 7.75% to Rs 164 in the week.
India's largest private sector bank by market capitalisation ICICI Bank shed 5% to Rs 652.85.
India's second largest software services exporter Infosys Technologies fell 4% to Rs 1644.10. Foreign brokerage house UBS said a sharp and sudden appreciation of the dollar against the British pound and euro would hit IT firms' revenue in dollar terms by 1-2%.
US crude for October 2008 delivery rose 45 cents to $101.37 a barrel on 12 September 2008 as the markets kept a watchful eye on the path of Hurricane Ike that could disrupt refineries and production in the United States for weeks. It lost $1.71 a barrel on Thursday, 11 September 2008 after falling to $100.10, its lowest level in 5-month in intra-day trade.
Inflation based on the wholesale price index rose 12.10% in the 12 months to 30 August 2008, below the previous week's annual rise of 12.34%, data released by the government on 11 September 2008, evening showed. Inflation for the week ended 5 July 2008 was revised up to 12.19% from 11.91%.
Industrial output rose 7.1% in July 2008 from a year earlier, above the previous month's 5.4% rise, data released by the government today, 12 September 2008, afternoon showed. The figure was above market expectations of a 6.5% growth. Manufacturing production rose 7.5% in July 2008 from a year earlier.
Passenger car sales fell for the second straight month in August 2008, the Society of Indian Automobile Manufacturers said. Car sales declined 4.4% to 94,584 units in August 2008 over August 2007. Sales of trucks and buses fell 6.3% to 34,294 units in August 2008 over August 2007.
Foreign institutional investors (FIIs) sold shares worth Rs 1525.40 crore in September 2008 (till 10 September 2008). FIIs sold shares worth Rs 30039.10 crore in the calendar year 2008 so far. Mutual funds bought shares worth Rs 61.70 crore in September 2008 (till 10 September 2008).