Major Financial news of 2008

I want to begin New year by summurazing what happened in last year. It will help one to do a better financial planning and take into factor many events which normally people skip and consider as non-related. Below are few major events which happened in India in 2008 and what could be its economical impact -

Mumbai Terror Attack: It is being remembered as 26/11 in line with 9/11 of US attack. Went on for 3 days, leaving at least 173 dead and more than 300 injured. While most serious loss is human lives in this incident, it impacts economy as well. And it is not only Mumbai but a concern for security in whole country. In 2008, hundreds of lives were lost as a series of blasts shook various Indian cities. While short term equity fall and rupee value depreciation was expected, it is not that negative as long term impact. Companies will worry about safety of their employees and establishment and so could impact foreign investment and industry growth. Tourism industry will be impacted for reducing foreign visit to India.

Sunsex: It started with a very promising 21,206. 'Black Monday' (21 Jan) as it is named, is famous for 2000 point fall in Sensex in a single day. And then it touched an unimaginable low 0f 7697 giving heart attack to many traders and even investors' belief was shaken. Trading market rules will be written again after this year and equity is no more a promising product for investors. Mutual funds are even worst performer and loosing faith of their customers.

Crude Oil: Oil price touched a all time high of $147 per barrel in July 11 and it was expected that it is not going to come down. With recession news it came down to <$40 surprising everyone but still not able to help economy to stablize. Inflation: Inflation neared 13% in mid jan while it was normal when year started. Comforting news is that it soothe down to single digit when year ended. Else it was a bouble impact on public to face inflation and economic recssion impact at same time.

Debt relief to Farmers: The Finance Minister, in his Budget Speech for 2008-2009, announced a Debt Waiver and Debt Relief Scheme for farmers. It was amounted to Rs 60,000 Crore.

Nuclear Agreement: Govt made historical civilian deal with US. On August 1, 2008, the IAEA approved the safeguards agreement with India. Us expect to bring $150 billion for nuclear power plan which will help India increasing its electricity production and improvising transportation.

Confidence Vote: In lieu of nuclear deal, govt had to go through confidence voting. Communist parties - Left fron withdrew its support from got on July bringing uncertainty in India. Govt survived with support from SP.

Nano: TATA announced world's cheapest car Nano. It planned to setup production plan in Singur, West Bengal. Later it was forced to move out becuase of opposition from Mamata Benerjee of Trimul Congress. It delayed roll out of car and TATA accepted Gujarat offer of setting production plan in their state. There are news for electric version of Nano as well (e-Nano) which might come up later.

Banks: HDFC Bank and Centurion Bank of Punjab announced their merger, creating India’s largest bank in terms of branches. India’s top private lender ICICI’s share price dipped more than 50 pct on various news of economic recession impact on this bank.

Satyam: IT major Satyam Computer Services faced some tough questions about corporate governance after a botched attempt to buy two of its sister firms for $1.6 billion. It was further impacted by World bank 8 year direct contract ban on company.

Jet Airways Layoff: Jet Airways faced staff ire over efforts to downsize and survive. 1900 employees were asked to go which was after Kingfisher and Jetairways shook hands. It was considered to be impact of this deal. Later Jet Airways chairman offered all employees to join back and keeping survival issue on hold and promised to look into other options for handling it.

Cricket: Cricket changed its shape when IPL was introduced in India in April 2008. The success of the inaugural IPL 20/20 league conceptualized a new business strategy and brought cricket again on top of sports while expanding opportunity in this field multiple times for sportmen. Even other sports are now trying to change how the games are played and increasing revenue.

Ranbaxy: FDA has banned 30 generic drugs made by Indian drug-maker Ranbaxy Labs from import to the US. It impacted one of largest pharmacy of India is big.

Please let me know more major events which are worth mentioning here and I will add those in above list.