The Bombay Stock Exchange sensitive index, Sensex, on the Bombay Stock Exchange today closed with a moderate a moderate loss of over 20 points and closed at 17097.55 on Monday against 17119.03 last Friday. After an onslaught of selling, triggered by a rising inflation, in banking, FMCG and consumer durable counters in the fag-end of the session, erased the early gains.
The 30-share index rose by a sharp over 150 points in early trade after reports came in that Abu Dhabi agreed to give $10 billion to Dubai to help tide over a crisis of an immediate payment by troubled Dubai World’s realty arm, Nakheel, However, the index ended at 17097.55 as profit-booking emerged at existing levels after inflation trebled to 4.78 per cent in November. Investors fear Reserve Bank in its attempt to arrest rising prices might adopt tight monetary measures which could lead to higher interest rates. Oriental Bank of Commerce, IDBI Bank, Canara Bank, YES Bank, BoI, Allahabad Bank, HDFC Bank and ICICI Bank were the major losers. IT stocks escaped selling amid hopes that there would be spurt in outsourcing developed economies in the wake recovery signs. Wipro and Infosys made gains of 2.23 per cent at Rs,658.75 and 1.76 per cent at Rs. 2498.
“IT stock remained positive as rupee slipped against dollar. Cement stocks too gave the markets support due to increasing demand and a possible rise in cement pric