Markets move up brushing aside poll result fears (Weekly market review)

May 16th, 2009 - 3:50 pm ICT by IANS  

Sensex Mumbai, May 16 (IANS) Indian markets crawled upwards this week brushing off fears of political uncertainty, with a key index gaining over 300 points.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended the week at 12,173.42 points, a gain of 2.5 percent or 296.99 points over the previous week’s close of 11,876.43 points.

The S&P CNX Nifty of the National Stock Exchange (NSE) too followed the Sensex, registering a 1.4 percent increase from its last close to end at 3,671.65 points.

“Markets absorbed the uncertainty earlier in the week, but regained confidence later and some good valuations also helped. Global markets have been in an uptrend, which was also helpful,” said Jagannadham Thunuguntla, equity head at SMC Capitals.

The Sensex hit an intra-week high of 12,173.42 points and low of 11,876.43, while the Nifty hit an intra-week high of 3,709.6 points and low of 3,554.6.

Broader market indices also ended the week on a high, with the BSE midcap index closing 0.97 percent higher than its previous weekly close, while the BSE smallcap index was up 2.34 percent.

With poll results coming in Saturday, it is clear that the present United Progressive Alliance (UPA) government will get a new term, which most analysts agree is very good news.

“There certainly will be a bounce when markets open Monday, even though they will have time to absorb the news,” said Thunuguntla.

“The new government will be expected to continue with economic reforms and try put the economy back on track.”

The Sensex slipped 193 points Monday after opening on a positive note. It lost 193.44 points or 1.63 percent from its previous close to end trade at 11,682.99 points.

Similarly, the Nifty lost 1.83 percent to close at 3,554.6 points.

The Sensex Tuesday rose over 475 points from its last closing figure to breach the 12,000-point mark at day-end. Banking and IT stocks led the rally. It went up 4.07 percent from Monday’s close to end trade at 12,158.03 points.

The Nifty gained 3.56 percent to close at 3,681.1 points.

Markets turned edgy Wednesday ahead of the exit polls for the parliamentary elections, with the Sensex losing 138 points to close at 12,019.65 points.

The Nifty shed 1.4 percent to close at 3,629.45 points.

Nervousness over poll results again gripped, inducing the Sensex to shut shop Thursday 146 points or 1.22 percent lower at 11,872.91 points.

The Nifty lost 0.97 percent to close at 3,600.15 points.

Markets finally brushed aside poll predictions that suggested a hung parliament with the Sensex regaining 300 points or 2.5 percent Friday. It closed at 12,173.42 points.

Similarly, the S&P Nifty gained 2.18 percent to close at 3,671.65 points.

Data with the market watchdog, Securities and Exchange Board of India (SEBI), showed foreign funds were net buyer this week having lapped up scrips worth ($1.15 billion) $1147.2 million.

The top gainers in the Sensex were Ranbaxy Labs (up 11.9 percent), HDFC (up 11.6 percent), ICICI Bank (up 10.4 percent), DLF (up 7.2 percent) and Reliance Infrastructure (up 6.7 percent).

Among losers were ONGC (down 7.9 percent), Hindustan Unilever (down 3.8 percent), Tata Steel (down 3.7 percent), Reliance Power (down 3.1 percent) and Tata Motors (down 1.3 percent).

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