Indian equities continues their rally(Weekly Review)May 3rd, 2008 - 1:48 pm ICT by admin
Mumbai, May 3 (IANS) The Indian equities market continued their rally during the week ended Friday and posted gains on the back of continued good corporate results from bluechip companies and strong global cues. Out of the four trading session, two ended in the positive zone with hefty gains.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) gained 474.14 points or 2.76 percent at 17,600.12, during the week under review. The broader S&P CNX Nifty of the National Stock Exchange (NSE) also rose 116.50 points or 2.27 percent.
Similarly, BSE’s midcap index gained 2.56 percent, while the smallcap index moved up by 1.07 percent.
The week started on a cautious note, ahead of central bank’s monetary policy review on April 29, and the Sensex lost 110.02 points or 0.64 percent Monday while the Nifty shed 22.05 points or 0.43 percent.
The market reacted positively Tuesday after the apex bank kept interest rates unchanged. The Sensex jumped 362.50 points or 2.13 percent while the Nifty was up 105.85 points or 2.08 percent.
But Wednesday saw the Sensex lose 91.15 points or 0.52 percent ands the Nifty shed 29.6 points or 0.57 percent as traders booked profit, ahead of the outcome of the US Federal Reserve’s policy meeting later in the day.
Markets remained closed on May 1 on account of May Day and Maharashtra day.
On the last day of the trading for the week, the market posted gains despite the latest data showing a rise in inflation at highest level in more than three years. Firm global markets supported domestic bourses.
The data on wholesale prices showed that India’s annual rate of inflation had shot up to a 42-month high of 7.57 percent for the week ended April 19 from 7.33 percent for the week before.
The 30-share BSE Sensex surged 312.81 points or 1.81 percent and the broader Nifty rose 62.30 points or 1.21 percent.
During the week, software stocks especially rallied after Finance Minister P.Chidambaram extended the fiscal sops under the software technology parks scheme by another year. The scheme for units based in such parks was set to expire in March 2009.
India’s second largest software exporter by sales, Infosys Technologiesm, gained 6.11 percent at Rs.1789.50, While the largest exporter Tata Consultancy Services rose 5.73 percent at Rs.940.75.
Country’s largest private sector company in terms of market capitalisation, Reliance Industries, was also up 1.92 percent at Rs.2674.85, while the second largest private telecom services provider, Reliance Communications, lost 2.75 percent at Rs.561.20 .
India’s top small carmaker in terms of sales Maruti Suzuki India rose 6.88 percent to Rs 788 in the week. The company’s sales rose 22.4 percent to 59,539 units in the domestic market compared in April 2008 over April 2007.