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Sensex Sinks To Lowest Level Since Nov 2005
    On Wednesday morning, India was counting down to the launch of Chandrayaan. On Friday afternoon, there was a countdown of quite another sort for the day's trading on the stock market to come to an end. When one of the most brutal sessions ever on the bourses finally closed, battered investors were left taking stock of the damage—the second biggest single-day fall in the sensex in terms of points (1,071) and the third biggest single-day percentage loss (10.9%).
    The sensex closed at
8,701.07, a level last seen on November 24, 2005. Every single share in the 30-scrip index ended in negative territory, with DLF (-24%) and Ranbaxy Laboratories (-18%) the worst-hit.
    The market was disappointed that the RBI had left key rates unchanged while announcing the credit policy. But it was also spooked by rising concern that a global recession has already started to bite. World markets had signalled as much earlier in the day. Tokyo's Nikkei fell 9.6% to its lowest close in five years, while Seoul's Kospi plunged 11%. Samsung, the South Korean company that is the largest chipmaker in Asia, dived 14% after reporting a 44% fall in Q3 earnings. Sony Corp, the world's second largest consumer electronics company, fell 12% after sharply cutting its profit forecast on Thursday.
    Brokers warned this could be the start of steep falls in the stock prices of biggies that depend on exports to the US and Europe for much of their profits.
Rupee breaches 50/dollar level
    The rupee on Friday breached the 50-mark against the dollar in intraday trade as the greenback posted gains against most major currencies. After hitting an all-time low of 50.15, the rupee closed at 49.95/96. Friday's close marked the 11th straight week the rupee has lost ground, its longest losing streak since Dec 2005. P 21 
PM, RBI predict slower growth
    PM Manmohan Singh on Friday said the economy was likely to grow at 7-7.5% this fiscal compared to over 9% last year. The RBI in its mid-year review of the economy also revised the GDP growth forecast to 7.5-8% from the previous figure of 8%. P 21 
    Friday's fall in the sensex was the 2nd biggest single-day pts loss, and 3rd biggest one-day percentage fall
    Investors lost Rs 3.3 lakh cr in a single day. BSE's market cap is now at Rs 27.41 lakh crore All 30 sensex stocks closed lower, with 20 ending over 10% down
For every stock that closed with a gain on the BSE, 9 ended as losers
RIL fell to 991 in intraday trade, the first time it has fallen below the Rs 1,000-mark since Aug 2006. It closed at Rs 1,016 on the BSE, losing Rs 29,038 cr in mkt value
    Unitech closed 51% down at Rs 30, a 2½-yr low, despite denying a payment default CRASH COURSE RBI to play the waiting game
    An announcement by Britain that economic output had shrunk for the first time in 16 years by 0.5% between July and September added to the gloom. MSCI's all-country world index dropped 2.8% to its lowest level since August 2003.
    The RBI would have had to take some radical steps to cheer up the domestic market. It conceded that the global financial situation was the worst since the Great Depression and vowed to strengthen the regulatory framework and monitor overseas operations of Indian banks to ensure their safety. But having already infused almost Rs 2 lakh crore into the system, it opted to keep key rates unchanged.
    Explaining the central bank's complete inaction on Friday, RBI governor D Subbarao said the central bank had taken all required measures ahead of the curve and would wait for some time for their impact to be felt at the ground level. The liquidity situation had already improved, he claimed. Against average borrowing of over Rs 90,000 crore by banks from the RBI under the liquidity adjustment facility in the last week of September, on Thursday banks parked excess liquidity of about Rs 35,000 crore with the RBI. On Friday too, banks deposited Rs 19,605 crore of excess liquidity with the central bank at 6%.
    The RBI reiterated that having moved swiftly over the last fortnight to ease monetary levers, maintaining the status quo on rates for the time being was a pragmatic move.
    Subbarao made it clear that the central bank would take appropriate action as and when the need arose, given the volatility in global financial markets, rather than waiting for predefined dates to announce changes. But the markets were not impressed, and went into meltdown mode. TNN