Crude gains after four sessions of drop

Crude prices gain on fresh Middle East tensions

After four sessions of drop, crude oil prices rose for the first time today, Tuesday, 07 October, 2008. Prices rose after fresh Middle East tensions resurfaced and investor worries fell a bit as they thought that global energy demand will not drop drastically in the coming months. Crude finished off the day's high as U.S. stocks weakened.

Crude-oil futures for light sweet crude for December delivery closed at $90.06/barrel (higher by $2.25 or 2.6%) on the New York Mercantile Exchange. Prices rose to a high of $90.6 during intra day trading. Prices reached a high of $147 on 11 July but have dropped almost 50% since then. Till date this year, prices have dropped by 6.2% till date.

As per reports today, Iran claimed that it forced down a Western aircraft on Sunday that accidentally entered its airspace, then allowed it to continue the next day to Afghanistan after questioning the passengers. This perked up crude prices partly today.

At the currency markets on Tuesday, the dollar gained against the yen but remained under pressure after the Federal Reserve said it would buy commercial paper in an attempt to revive frozen credit markets and ease overall borrowing costs. The yen rallied against both the dollar and the euro as investors fled to safe-haven currencies on ongoing worries about credit markets and the impact of the financial crisis on institutions in the U.S. and Europe. The dollar index, which measures the U.S. unit against a basket of major currencies, remained under pressure, trading at 81.093, down from 81.300 in morning trade and 81.593 on late Monday.

For the third quarter of the year crude prices ended lower by 28%. This was the biggest quarterly drop since 1991. Before that, crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. For the month of September, prices registered drop of 13%.

Investors are concerned that a prolonged credit crisis would further undermine an already waning demand for energy as global growth slows down.

Against this background, November reformulated gasoline closed at $2.0628 a gallon, up 0.4 cent, while November heating oil gained 3.2 cents to end at $2.5057 a gallon.

Natural gas for November delivery declined by 6.7 cents to finish at $6.768 per million British thermal units.

At the MCX, crude oil for October delivery closed at Rs 4,205/barrel, lower by Rs 47 (1.09) against previous day's close. Natural gas for October delivery closed at Rs 328.2/mmbtu, lower by Rs 5.8/mmbtu (1.7%).

The U.S. Energy Department's Energy Information Administration will issue a weekly update on petroleum supplies tomorrow. Expectations for the data were mixed.

BSE Bulk Deals to Watch - Oct 7 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
7/10/2008 533022 20 MICRONS EUREKA STOCK AND SHARE BROKING SERVICES LIMITED B 101285 30.25
7/10/2008 533022 20 MICRONS EUREKASTOCK AND SHARE BROKING SERVICES LIMITED S 101285 30.35
7/10/2008 526955 ABL BIOTECHN T P ANANDH B 50000 58.93
7/10/2008 513335 AHMEDNAGAR F MERILL LYNCH CAPITAL MARKETS ESPANA S A SV S 200000 75.00
7/10/2008 500009 AMBAL SARA E SARABHAI HOLDING PVT LTD B 3300000 10.00
7/10/2008 500009 AMBAL SARA E SPARK SECURITIES P LTD S 492811 10.01
7/10/2008 500009 AMBAL SARA E M PRASAD AND CO LTD S 740095 10.00
7/10/2008 500009 AMBAL SARA E KARNANI FINANCE ENTERPRISE LTD S 1604557 10.00
7/10/2008 530355 ASIAN OILFIE KINSFOLK INDUSTRIES P LTD B 55097 71.30
7/10/2008 530355 ASIAN OILFIE KINSFOLK INDUSTRIES P LTD S 71097 72.00
7/10/2008 530355 ASIAN OILFIE CONSOLIDATED SECURITIES LTD S 368517 72.00
7/10/2008 513059 G.S. AUTO SPJSTOCK B 144680 70.90
7/10/2008 513059 G.S. AUTO SPJSTOCK S 110301 70.30
7/10/2008 531439 GOLDSTON TEC HEMANT MADHUSUDAN SHETH B 277000 107.81
7/10/2008 531439 GOLDSTON TEC ANKIT RAJENDRA SANCHANIYA S 100000 109.19
7/10/2008 532859 HTMT GLOBAL MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S 218135 155.00
7/10/2008 532081 K SERA SERA S V ENTERPRISES B 433695 24.39
7/10/2008 532081 K SERA SERA S V ENTERPRISES S 489284 24.14
7/10/2008 531366 KOHINOOR BRO S V ENTERPRISES B 1721454 6.11
7/10/2008 531366 KOHINOOR BRO S V ENTERPRISES S 1742350 6.05
7/10/2008 532985 KOTAK SENSEX KOTAK SECURITIES LTD B 13449 117.79
7/10/2008 532728 MALU PAPER KOTAK MAHINDRA INVESTMENTS LTD S 98965 13.78
7/10/2008 531996 ODYSSEY CORP MADINA GULAMALI GHEEWALA B 33000 29.81
7/10/2008 531996 ODYSSEY CORP COMFORT SECURITIES PVT.LTD. S 33355 30.28
7/10/2008 526490 PRATIK PANEL PRATIK GUNVANTRAJ SINGHVI B 19515 2.00
7/10/2008 526407 RIT PRO IND JUHI DINESHCHANDRA RASTOGI B 49102 60.10
7/10/2008 631703 TRIBHVAN HSG SOPHIA GROWTH S 386000 30.50
7/10/2008 532765 USHER AGRO NIKHIL SECURITIES LTD B 100000 132.99

NSE Bulk Deals to Watch - Oct 7 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-OCT-2008,20MICRONS,20 Microns Limited,ADROIT FINANCIAL SERVICES PVT LTD,BUY,140233,31.17,-
07-OCT-2008,20MICRONS,20 Microns Limited,AMBIT SECURITIES BROKING PVT. LTD.,BUY,198304,31.49,-
07-OCT-2008,20MICRONS,20 Microns Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,189961,31.20,-
07-OCT-2008,20MICRONS,20 Microns Limited,BHARAT SECURITIES PVT LTD,BUY,145501,30.63,-
07-OCT-2008,20MICRONS,20 Microns Limited,CPR CAPITAL SERVICES LTD.,BUY,146998,31.09,-
07-OCT-2008,20MICRONS,20 Microns Limited,NISSAR BROTHERS,BUY,96508,32.95,-
07-OCT-2008,20MICRONS,20 Microns Limited,PASHUPATI CAPITAL SERVICES PVT. LTD.,BUY,143738,31.26,-
07-OCT-2008,20MICRONS,20 Microns Limited,TRANSGLOBAL SECURITIES LTD.,BUY,144830,30.91,-
07-OCT-2008,20MICRONS,20 Microns Limited,YUVAK SHARE TRADING PVT LTD,BUY,164670,31.49,-
07-OCT-2008,DCB,Development Credit Bank L,INDEA ABSOLUTE RETURN FUND,BUY,1000000,31.70,-
07-OCT-2008,GOLDTECH,Goldstone Tech Ltd.,GOPAL MARATHE,BUY,126000,110.23,-
07-OCT-2008,GOLDTECH,Goldstone Tech Ltd.,GOPAL PRAKASH KANE,BUY,100000,109.76,-
07-OCT-2008,GOLDTECH,Goldstone Tech Ltd.,MASUMI OVERSEAS PVT LTD,BUY,11000,103.77,-
07-OCT-2008,MONNETISPA,Monnet Ispat Ltd,MAVI INVESTMENT FUND,BUY,310000,289.00,-
07-OCT-2008,NAHARINDUS,Nahar Industrial Enterpri,ASHISH DHAWAN,BUY,512310,37.50,-
07-OCT-2008,PAGEIND,Page Industries Limited,NALANDA INDIA FUND LIMITED,BUY,889000,454.97,-
07-OCT-2008,SUBHASPROJ,Subhash Proj & Mkt Ltd.,INDEA ABSOLUTE RETURN FUND,BUY,500000,99.50,-
07-OCT-2008,VINCARDS,Vintage Cards & Creations,SMK SHARES AND STOCK BROKING PVT. LTD.,BUY,4900,35.30,-
07-OCT-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,BUY,3586,35.30,-
07-OCT-2008,20MICRONS,20 Microns Limited,ADROIT FINANCIAL SERVICES PVT LTD,SELL,140233,31.06,-
07-OCT-2008,20MICRONS,20 Microns Limited,AMBIT SECURITIES BROKING PVT. LTD.,SELL,198304,31.65,-
07-OCT-2008,20MICRONS,20 Microns Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,189961,31.09,-
07-OCT-2008,20MICRONS,20 Microns Limited,BHARAT SECURITIES PVT LTD,SELL,145501,31.47,-
07-OCT-2008,20MICRONS,20 Microns Limited,CPR CAPITAL SERVICES LTD.,SELL,146998,31.14,-
07-OCT-2008,20MICRONS,20 Microns Limited,NISSAR BROTHERS,SELL,96508,32.91,-
07-OCT-2008,20MICRONS,20 Microns Limited,PASHUPATI CAPITAL SERVICES PVT. LTD.,SELL,143737,32.04,-
07-OCT-2008,20MICRONS,20 Microns Limited,PRIME INDIA INVESTMENT FUND LTD,SELL,162690,30.82,-
07-OCT-2008,20MICRONS,20 Microns Limited,TRANSGLOBAL SECURITIES LTD.,SELL,144830,31.06,-
07-OCT-2008,20MICRONS,20 Microns Limited,YUVAK SHARE TRADING PVT LTD,SELL,164669,31.67,-
07-OCT-2008,DCB,Development Credit Bank L,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,1000000,31.70,-
07-OCT-2008,EDUCOMP,Educomp Solutions Limited,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,110000,2685.72,-
07-OCT-2008,GOLDTECH,Goldstone Tech Ltd.,MASUMI OVERSEAS PVT LTD,SELL,257751,109.90,-
07-OCT-2008,MONNETISPA,Monnet Ispat Ltd,ANUBHAV HOLDING PVT LTD,SELL,310000,289.00,-
07-OCT-2008,NAHARINDUS,Nahar Industrial Enterpri,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,511310,37.50,-
07-OCT-2008,PAGEIND,Page Industries Limited,MAHTANEY GULU - HUF,SELL,280000,455.00,-
07-OCT-2008,PAGEIND,Page Industries Limited,NARI GENOMAL,SELL,200000,455.00,-
07-OCT-2008,PAGEIND,Page Industries Limited,RAMESH GENOMAL,SELL,200000,455.00,-
07-OCT-2008,PAGEIND,Page Industries Limited,SUNDER GENOMAL,SELL,200000,455.00,-
07-OCT-2008,SUBHASPROJ,Subhash Proj & Mkt Ltd.,ABN AMRO BANK N.V. LONDON BRANCH,SELL,500000,99.50,-
07-OCT-2008,VINCARDS,Vintage Cards & Creations,SMK SHARES AND STOCK BROKING PVT. LTD.,SELL,1,35.30,-
07-OCT-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,SELL,3586,35.30,-

Post Session Commentary - Oct 7 2008

Domestic markets ended the day mixed after extreme volatile session due to the continuous buying and selling over the ground. BSE Sensex ended below 11,700 level with loss of 0.9% and NSE Nifty above 3,600 mark with marginal gain of 0.12%. The markets today made a sharp turnaround from the yesterday's lows and opened significantly higher backed by RBI's strategic move of CRR cut by 50 basis points to 8.50%, which will be implemented from October 11, 2008. Also, the move by market regulator SEBI gave a boost at the initial stage. SEBI relaxed norms for foreign institutional investors for managing the assets under participatory notes (P-Notes) by waiving 40% cap on assets in cash segment in the form of P-Notes as well as removing of bar on offshore derivatives. However the market failed to retain the initial gains and turned volatile to trade with negative bias as weak sentiments were not over yet and investors were looking puzzled. However, most of the Asian markets showed a sign of relief after a big interest rate cut by Australian Central Bank in order to ease the unfolding global credit crises, which has tattered the global market. European markets were also trading higher with volatility. Domestic markets managed to recover during last trading hours but still ended mixed. From the sectoral front, Capital Goods, Bank, Metal, IT and Pharma stocks pulled the market lower. However, Oil & Gas stocks were in limelight as witnessed most of the buying from these baskets. Midcap and Smallcap stocks were sufferers of negative sentiment as ended with cut of more than 2%. Among the Sensex pack all 16 stocks ended in red, while 14 in green. The market breadth was negative as 1822 stocks closed in red while 787 stocks closed in green and 74 stocks remained unchanged.

The BSE Sensex closed lower by 106.46 points at 11,695.24 while NSE Nifty ended marginally up by 4.25 points at 3,606.60. The BSE Mid Caps and Small Caps closed with losses of 87.07 points at 4,257.16 and by 110.54 points at 4,976.39. The BSE Sensex touched intraday high of 12,181.43 and intraday low of 11,501.85.

Losers from the BSE Sensex pack are TCS Ltd (7.02%), L&T Ltd (6.94%), Sterlite Indus (6.35%), HDFC Bank Ltd (6.17%), M&M Ltd (5.84%), Satyam Computer (5.18%), Wipro Ltd (4.07%), Tata Power (3.82%), ITC Ltd (3.08%) and State Bank of India (1.81%).

Gainers from the BSE Sensex pack are NTPC Ltd (4.27%), Ranbaxy Lab (3.88%), BHEL (3.26%), Bharti Airtel (2.66%), Reliance (2.04%), Tata Steel (2.03%), Reliance Infra (1.94%), Grasim Indus (1.73%) and Maruti Suzuki (1.68%).

The BSE Capital Goods index closed lower by 376.41 points at 9,118.52. Losers are Praj Indus (7.98%), Bharat Bijli (7.13%), Siemens Ltd (7.05%), L&T Ltd (6.94%), Havells India (5.53%) and Lakshmi MA W (5.08%).

The BSE Bank index dropped by 132.75 points to close at 6,039.25. Major losers are Kotak Bank (9.02%), HDFC Bank Ltd (6.17%), Indus Ind Bank (4.56%), Karnataka Bank (3.53%), State Bank of India (1.81%) and ICICI Bank (1.07%).

The BSE Metal index plunged 102.62 points to close at 7,534.03. Major losers are Welspan Guajrat Sr (12.17%), JSW Steel (10.91%), Hindustan Zinc (9.30%), Gujarat NRE C (7.46%), Sterlite Indus (6.35%) and NMDC Ltd (4.98%).

The BSE IT index ended down by 88.95 points at 2,840.30. Losers are NIIT Ltd (14.64%), Orbit Co (11.25%), Tech Mahindra (10.90%), Financ Tech (8.74%), TCS Ltd (7.02%) and Aptech Ltd (6.86%).

The Pharma index lost 60.55 points to close at 3,427.52. As Opto Circuit (7.72%), BIL Care (7.17%), Dr Reddys Lab (5.70%), Glenmark Pharma (5.45%), Sun Pharma (5.27%) and Biocon Ltd (4.92%) closed in negative territory.

The BSE Oil & Gas index gained 102.68 points to close at 8,012.68 as Gail India (2.87%), Reliance Pet (2.09%), Reliance (2.04%), ONGC Ltd (1.25%) and Reliance Natural Resources (0.88%) ended in positive territory.

Sensex in red, Nifty in green

The key benchmark indices ended mixed on a highly volatile day of trade today. The BSE Sensex lost 106.46 points while Nifty rose 4.25 points. The market swung between positive and negative zone throughout the day. European stocks were green amid choppy trade amid reports the UK government may be forced to provide funding for Royal Bank of Scotland.

The BSE Sensex and the S&P CNX Nifty both hit two-year lows in mid-afternoon trade today, 7 October 2008. This was in contrast to an initial surge on the bourses that was triggered by liquidity boosting measures by Indian financial regulators announced after trading hours on Monday, 6 October 2008. Reliance Industries recovered sharply from 52 week low hit today. Bharat Heavy Electricals came off from the session's lows. The market breadth was negative

US futures were up. Nasdaq futures were up 19.25 points and Dow Jones futures were up 33 points.

The BSE 30-share Sensex lost 106.46 points or 0.9% to 11,695.24. The index fell 299.85 points at the day's low of 11,501.85, hit in mid-afternoon trade, its lowest level in more than two years.

The Sensex surged 379.73 points at day's high of 12,181.43, in early trade. The market regulator Securities & Exchange Board of India (Sebi)'s decision to lift restriction on issue of participatory notes and the Reserve Bank of India's surprise steep 50 basis cut in the cash reserve ratio had triggered a rebound on the bourses in early trade after steep losses of the past two trading sessions. Both the Sebi and RBI announcements were made after trading hours on Monday, 6 October 2008.

The barometer index is down 8,591.75 points or 42.35% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 9,511.53 points or 44.85% below its all-time high of 21,206.77 struck on 10 January 2008.

The S&P CNX Nifty was up 4.25 points or 0.12% to 3,606.60. Nifty hit a low of 3,537 in mid-afternoon trade, its lowest level since 5 October 2006.

BSE clocked a turnover of Rs 4,728 crore today as compared to a turnover of Rs 3,992.08 crore on 6 October 2008.

Nifty October 2008 futures were at 3640.10, at a premium of 33.50 points as compared to spot closing of 3606.60. NSE's futures & options (F&O) segment turnover was Rs 59,767.70 crore, which was higher than Rs 46,853.23 crore on Monday, 6 October 2008.

The BSE Mid-Cap index was down 2% at 4,257.16 and the BSE Small-Cap index was down 2.17% at 4,976.39.

BSE Capital Goods index (down 3.96% to 9,118.52), BSE IT index (down 3.04% to 2,840.30), BSE Bankex (down 2.15% to 6,039.25), BSE Realty index (down 1.94% to 2,941.72), BSE FMCG index (down 1.77% to 2,053.68), BSE HealthCare index (down 1.74% to 3,427.52), BSE Metal index (down 1.34% to 7,534.03), BSE Teck index (down 1.22% to 2,352.76), underperformed the Sensex.

BSE Oil & Gas index (up 1.3% to 8,012.18), BSE PSU index (up 0.84% to 5,980.92), BSE Power index (up 0.38% to 2,074.26), BSE Auto index (down 0.41% to 3,511.96), BSE Consumer Durables index (down 0.67% to 2,552.32), outperformed the Sensex.

The market breadth was weak on BSE with 787 shares advancing as compared to 1,822 that declined. 74 shares remained unchanged.

India's largest private sector company by market capitalization and oil refiner Reliance Industries rose 2.04% to Rs 1,675.40. The stock recovered from a 52 week low of 1615.25 hit today.

Capital goods stocks declined. Larsen & Toubro (down 6.94% to Rs 1,008.10), and Suzlon Energy (down 1.97% to Rs 124.60) edged lower. However India's largest electric equipment maker by sales Bharat Heavy Electricals surged 3.26% to Rs 1,496.70. The stock recovered from session's low of Rs 1,440.10.

Bank shares pared gains after firm opening. India's largest private sector bank by net profit ICICI Bank fell 1.07% to Rs 485.20. The stock came off from the session's high of Rs 521.70. India's second largest private sector bank by net profit HDFC Bank declined 6.17% to Rs 1,127.70. The stock came off from the session's high of Rs 1,245. India's largest commercial bank State Bank of India fell 1.81% to Rs 1,408. The stock came off from the session's high of Rs 1,503.

The Reserve Bank of India (RBI), after trading hours on Monday, 6 October 2008, announced a 50 basis points cut in the cash reserve ratio (CRR) to 8.5%, with effective from 11 October 2008. RBI said the CRR cut is an ad hoc, temporary measure and it will be reviewed on a continuous basis in the light of the evolving liquidity conditions. RBI said it will give priority to liquidity management over the period ahead given the turbulence in international financial markets. RBI also said the overriding priority for monetary policy is to eschew any further intensification of inflationary pressures and to firmly anchor inflation expectations.

Tata Consultancy Services (down 7.02% to Rs 575.08), Sterlite Industries (down 6.35% to Rs 314.05), Satyam Computer Services (down 5.18% to Rs 279.09), edged lower from the Sensex pack.

NTPC (up 4.83% to Rs 176.85), Ranbaxy Laboratories (up 5.54% to Rs 260.10), and Bharti Airtel (up 3.6% to Rs 755), edged higher from the Sensex pack.

India's largest oil exploration firm by revenue Oil and Natural Gas Corporation rose 1.25% to Rs 992.35. The stock came off from the session's high of Rs 1,040. The company will shortly tie up with Uranium Corporation of India for exploring and mining the fissile material, suggest reports.

Reliance Natural Resources clocked the highest volume of 1.41 crore shares on BSE. Idea Cellular (1.18 crore shares), Chambal Fertilisers and Chemicals (1.02 crore shares), Reliance Petroleum (82.07 lakh shares) and IFCI (77.66 lakh shares) were the other volume toppers in that order.

Reliance Capital clocked the highest turnover of Rs 389.90 crore on BSE. Reliance Industries (Rs 344.76 crore), Larsen & Toubro (Rs 204.33 crore), State Bank of India (Rs 178.05 crore) and ICICI Bank (Rs 176.86 crore) were the other turnover toppers in that order.

In Europe, UK's FTSE 100, France's CAC 40 and Germany's DAX were up between 0.75% to 1.95%. As per reports the UK government may be forced to provide funding for Royal Bank of Scotland. On Monday, credit ratings agency S&P cut its rating on RBS, citing earnings and further writedown risks.

European Union finance ministers gathered in Luxembourg on Tuesday, 7 October 2008, to discuss ways of protecting savers' deposits and counter the market turmoil that saw the region's stock markets suffer record losses on Monday, 6 October 2008. Australia's central bank cut its benchmark cash rate by 100 basis points to 6%, stunning investors with its biggest interest rate cut in 16 years.

Asian stocks outside Japan rose for the first time in four days on Tuesday, 7 October 2008, after a surprisingly large interest rate cut by Australia's central bank raised hopes that other policymakers would follow suit. Taiwan stocks ended up 0.34%, recouping sharp losses earlier in the day and rebounding from a more than four-year closing low the previous session as government funds helped bolster market heavyweights such as TSMC.

South Korea's KOSPI rebounded from a 21-month low and rose 0.54%. The country's regulator said it was considering steps to reduce volatility in the equity market, helping to stem some of the day's losses.

China's stock market fell but ended well off its lows as hopes for government support helped banks and property shares rebound from a sharp early slide. The Shanghai Composite Index, which had dropped as much as 4.64% in the morning, closed down 0.73% at 2,157.839 points. Singapore shares reversed early losses go gain about 2%.

Japan's Nikkei was down 3.03% after The Bank of Japan kept interest rates unchanged at 0.5% on Tuesday, 7 October 2008, and maintained its assessment on the economy, which it said was sluggish.

Back home, the Sebi decision on lifting of restriction on P-notes comes at a time when foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8278.10 crore last month. The outflow has reached Rs 38037.30 crore in calendar year 2008 (till 3 October 2008).

Exactly a year ago, Securities & Exchange Board of India (Sebi) had announced stringent restrictions on P-notes, totally banning fresh issue of P-notes with Indian derivatives as underlying. It had also mandated unwinding of such positions within 18 months. Sebi had also restricted issuance of P-notes in the spot segment to 40% of assets under custody. P-notes are issued by foreign institutional investors registered in India to unregistered overseas investors.

Meanwhile, with the end of third quarter of the calendar year 2008 on Tuesday, 30 September 2008, hedge fund are bracing for heavy redemption amid US financial sector crisis which has already spread to Europe. Investors in hedge funds are usually allowed to exit funds only on the final day of the financial quarter. Large-scale investor redemption in hedge funds may trigger further selling by foreign funds in India. Hedge funds mainly operate through the participatory notes route in India. However, there is no data available on the quantum of hedge funds' investment in India.

The troubles that started with an overheated housing market in the US have infected financial markets around the world, making banks fearful of lending to other banks, let alone to businesses and consumers. That has led to worries that economies around the world might not only sputter but slide into reverse. Recently, governments across Europe rushed to prop up failing banks, while the governments of Germany, Ireland and Greece also said they would guarantee bank deposits.

Oil prices, down nearly 40% from their peak because of recession worries, climbed back to over $90 a barrel.

According to Finance Minister P Chidambaram Indian business and industry have placed India in a situation where the country can weather the global financial crisis. He counts robust revenues, exports and investment planned by Indian corporates as major positive factors which would help India through the global crisis.

The Finance Minister expects 8% GDP growth in the current financial year and 9% in financial year 2009-10.