December started on a good note. On Friday (November 30), FIIs were net buyers by a large margin. But on Monday (December 3), they turned out to be net sellers. Nevertheless, the market closed higher on Monday. Reliance Energy shot up to touch a high of Rs 1,927. NTPC and Tata Power also rose. Man Industries spurred by over 4.5% after the company declared plans of coming out with an IPO for their real estate arm. PNB surged by over 4% after the company announced that they would raise Rs 3 billion by selling bonds. Infotech stocks also rose. US stocks fell led by financial companies on a warning on further credit market losses by Deutsche Bank. Morgan Stanley and Merrill Lynch declined. So did GE after Citigroup cut its profit estimate. MetLife forecasted 2008 profit that missed analysts' projections.
On Tuesday, the Nifty closed flat in positive territory while the Sensex dipped. Among the index stocks, Tata Steel, L&T, BHEL and Infosys were among the major gainers while RIL, ICICI Bank, ONGC and TCS were the laggards. Mid caps did well though. Cement stocks were doing well till the announcement of the government requesting MMTC to import cement to stabilize prices. Engineering, construction and refinery stocks did well.
Though weak cues from the US market persisted, the bulls ruled on Wednesday. Mid-cap steel stocks like Uttam Galva, Sunflag Iron and Essar Steel were among the major gainers. Ispat Industries, Apar Industries, Hindustan Motors and WWIL were among the stocks in limelight. Pharma stocks were back in action. REL slipped marginally. US stocks rallied on Wednesday spurred by strong economic news and continuing bets that the Federal Reserve will cut interest rates again at its policy meeting next week. Microsoft, Oracle and Intel led technology shares higher on analyst reports that demand for computers and software will increase.
Thursday's rally was led by strong international cues. The Nifty hit an all time high and the Sensex crossed the 20k mark. But the markets turned choppy and sharp sharp bout of selling dragged the indices lower though they closed positively. GVK Power soared on reports that the company would split each stock into 10. Unitech was another stock that soared on the news that the company has earmarked Rs 200 bn to develop 48 malls and shopping centres across the country over the next six years.
The last day of the week was a volatile session but the bulls managed to rule with buying support from pharma, technology and realty stocks.
Since the previous week's close, only 4 Sensex shares ended in the red: Bajaj Auto, RIL, ACC and Grasim. Reliance Energy topped with 11.16 per cent.
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