Taking Stock for 21 December 2009

Taking Stock for 21 December 2009

New Delhi: The Sensex fell for a second day on Monday, December 14, led by banks, as inflation climbed to a 10-month high, setting off speculation that the RBI might tighten monetary policy to reign in prices. Hindustan Unilever, India’s largest FMCG company, also slid 2% for the day.

Tuesday, December 15, 2009 I

ndia’s benchmark index fell again on Tuesday, to a 2-week low, again on concerns that inflationary pressure may lead the government to tighten liquidity in the market. Lenders led the losses. Reliance Communications and Reliance Infrastructure also slid, as the government investigates whether the two companies, which are controlled by Anil Ambani, violated oversea borrowing rules.

Loading video...

Wednesday, December 16, 2009

The Sensitive index rose modestly on Wednesday, breaking its 4-day losing streak. Infosys led IT service providers higher, after they announced they would provide finance and accounting services to Brazilian company Royal Philips Electronics. Bharti Airtel also climbed, after expressing interest in buying a Bangladeshi telecom operator.

Thursday, December 17, 2009

The gauge ended relatively flat on Thursday, after a volatile day of trade, with the index swinging between gains and losses at least 20 times throughout the day. India’s third biggest lender HDFC Bank, lost over 1% on expectations that the US Federal Reserve might raise interest rates next year. IT service providers also rose after the rupee weakened against the dollar. Maruti Suzuki lost 1% after Goldman Sachs rated the stock as a sell referring to expensive valuations, increased competition and more dependence on exports. DLF slid over 3.5%, after it said that it would list a real estate investment trust depending on market conditions but didn’t set a time.

Friday, December 18, 2009

Markets ended the week on a negative note, with only a few triggers in the domestic market and a lackluster opening in European markets keeping investors from taking many new positions. Top gainers were Tata Motors, Sun Pharma, TCS, Hero Honda, and Wipro. Top losers included Reliance Industries, Sterlite Industries, ICICI Bank, DLF, and Bharti Airtel.

Barring the Healthcare, Consumer Durables, and Auto indices, all other sector indices ended the day in the red.