Thaindian News

Mumbai, Dec 4 (IANS) Benchmark indices of Indian equities staged one of their best weekly performances in over two years this week, adding over 7 percent, as markets in western countries rallied strongly on signs that Euro zone leaders would come up with concrete steps to tide over the debt crisis.

Also, latest employment data from the US showed joblessness dipping sharply to 8.6 percent.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), put up the best weekly performance in two-and-half years, adding around 1,151 points or 7.34 percent during the week to close at 16,846.83 points.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange too followed suit and gained 7.22 percent or 340.1 points and closed Friday at 5,050.15 points.

Broader markets also shot up with the BSE 500 index registering a weekly gain of 5.8 percent. The BSE midcap index moved up 2.69 percent up while the BSE smallcap index rose 2.32 percent, compared to last week.

Foreign institutional buyers too stared December on a positive note. In the two trading session on Dec 1 and Dec 2, foreign funds pumped in $26.8 million and $175.17 million. For the week though, they were net sellers to the tune of $20.39 million.

“Some welcome steps taken by Euro zone and China bestowed a sigh of relief to the market players. Global markets rallied after the coordinated actions of six central banks namely,” said broking firm SMC in a note.

Central banks such as the US Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank said they would better co-ordinate among themselves to provide dollar liquidity in emergencies so as to enable banks to lend more.

Also, China’s central bank reducing the statutory reserve ratio by 50 basis points infused more liquidity.

Among global markets, Asia ended on a mixed note. On a weekly basis, the Japanese Nikkei closed 5.93 percent higher at 8,643.75 points, while Hong Kong’s Hang Seng ended 7.64 percent up at 19,040.39 points.

However, the Chinese Shanghai composite index shed 0.82 percent and closed the week at 2,360.66 points.

European markets reacted most positively as leaders decided to move towards a fiscal union, triggering hopes that a concrete solution the zone’s debt crisis was close.

Britain’s FTSE 100 closed 7.51 percent up at 5,552.29 points, while the French CAC 40 closed 10.78 percent higher at 3,164.95 points.

The German DAX rose 10.7 percent at 6,080.68 points during the week.

Wall Street too rallied. The S&P; shot up 7.39 percent and closed the week at 1,244.28 points, while the Dow gained 7.01 percent and ended Friday at 12,019.42 points.

The technology-heavy Nasdaq also ended 7.59 percent higher at 2,626.93 points.