Profit booking in late trade erased some of the strong gains triggered by the 45-nations Nuclear Supplier Group (NSG) on Saturday, 6 September 2008, lifting a 34-year-old embargo on nuclear trade with India. The BSE 30-share Sensex was up 444.70 points as per provisional closing. Both the key benchmark indices BSE Sensex and S&P; CNX Nifty fell below their respective psychologically important levels of 15,000 and 4,500, after topping those levels earlier in the day.

Strong Asian and European markets supported the domestic bourses. The market breadth was strong. All the 30 Sensex stocks were in green. Sterlite Industries surged over 6%. Probable nuclear deal beneficiaries were the flavor of the day. Banking and financial shares also surged.

Stocks rose across the globe after the US government on Sunday, 7 September 2008, took over mortgage finance firms Fannie Mae and Freddie Mac to limit extensive damage of the financial crisis. US futures jumped. In Asia, key benchmark indices in Japan, Hong Kong, Taiwan, Singapore, South Korea were up by between 3.88% and 5.57%. However, China's Shanghai Composite was down 2.68%

In Europe, key benchmark indices in UK, Germany and France were up by between 3.57% and 4.67%.

The BSE 30-share Sensex was up 444.70 points or 3.07% to 14,928.53, as per provisional closing. It opened 554.23 points higher at 15,034.06 and surged to strike an intra-day high of 15,107.01 in early trade. At the days high, the Sensex gained 623.18 points. At the days low of 14,917.06 hit in late trade, the Sensex rose 433.23 points.

The S&P; CNX Nifty jumped 126.05 points or 2.90% to 4,478.35 as per provisional closing.

The NSGs 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. The approval came after almost three days of meeting in Vienna, ending a three-decade-long ban on India buying materials related to nuclear energy. The NSG meet was called to minimise any damage to the Non-Proliferation Treaty, which India has not joined.

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 market breadth was strong on BSE with 1656 shares advancing as compared to 1040 that declined. 63 remained unchanged.

The total turnover on BSE amounted to Rs 4485 crore as compared to Rs 3187 crore by 14:30 IST.

Indias top copper manufacturer in terms of sales, Sterlite Industries jumped 6.16% to Rs 624 on 5.79 lakh shares. It was the top gainer from Sensex pack

Banking and financial shares vaulted buoyed by the bailout of US mortgage giants Fannie Mae and Freddie Mac. ICICI Bank (up 4.65% to Rs 719), HDFC Bank (up 4.43% to Rs 1302.70), State Bank of India (up 4.84% to Rs 1592.05), and Housing Development Finance Corporation (up 4.12% to Rs 2375) surged.

Potential nuclear deal beneficiaries rallied. Indias largest private sector power generation firm by sales, Reliance Infrastructure jumped 4.17% to Rs 1058.20. The company had earlier announced plans to invest Rs 12,000- crore in nuclear power capacity. It plans to install 2000 megawatt of nuclear power capacity.

Indias largest engineering & construction company by order book position Larsen & Toubro gained 4.54% to Rs 2735.15. Bharat Heavy Electricals, the nations largest capital goods maker by sales surged 2.90% to Rs 1782. The company supplies up to 500 megawatt of equipment to Nuclear Power Corporation.

Indias largest power generation company by sales, National Thermal Power Corporation surged 4.50% to Rs 181.25. The company signed a memorandum of understanding with Swiss Agency for Development and Cooperation to formulate a long-term strategy for renewable energy projects. The company made this announcement after trading hours on Friday, 5 September 2008.

Indias largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) advanced 2.19% to Rs 2125 on 7.30 lakh shares.

Telecom pivotals were in demand on renewed buying interest. Indias second largest cellular services provider in terms of market capitalisation Reliance Communications (RCom) advanced 1.03% to Rs 398, off days high of Rs 415. RComs subsidiary Reliance Big Entertainment reportedly acquired a majority stake in the US-based cricket webcasting portal, Willow TV, for an undisclosed amount.

Indias largest cellular services provider in terms of market capitalisation Bharti Airtel rose 1.54% to Rs 817.25

Ranbaxy, Indias top drug maker by sales gained 3.61% to Rs 466.60, after striking days low of Rs 438.05. The Japanese drug maker Daiichi Sankyos open offer to acquire an additional 20% stake at Rs 737 a share in the company ended on 4 September 2008.

IT pivotals advanced on fresh buying. Infosys Technologies (up 2.09% to Rs 1748.60), Satyam Computer Services (up 3.29% to Rs 429.50), Wipro (up 1.11% to Rs 431), and TCS (up 1.78% to Rs 853.10), logged gains.

Auto shares gained. Indias top truck maker by sales Tata Motors rose 4.30% to Rs 438 on reports of stalemate over acquisition of land for the companys project at Singur ended on Sunday, 7 September 2008 following two rounds of discussions between West Bengal Chief Minister Buddhadeb Bhattacharjee and Trinamool Congress chief Mamata Banerjee.

Mahindra & Mahindra (up 0.61% to Rs 585.50), and Maruti Suzuki India (up 0.92% to Rs 686), rose from auto pack.

New York's main contract, light sweet crude for delivery in October 2008 rose $2.37 to $108.60 per barrel today, 8 September 2008 on worries hurricane Ike will threaten production facilities in the oil-rich US Gulf Coast.

The government is working on 32 reform laws, 21 of them in the area of economy and finance, Trade Minister Kamal Nath said in an interview to a German newspaper published on Monday, 8 September 2008. The government expects its coalition allies to support much of its planned economic reform legislation, Nath told the Handelsblatt daily.

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