Sensex rises for 13 consecutive weeks, adds 478 points (Weekly market review)June 6th, 2009 - 2:01 pm ICT by IANS
Mumbai, June 6 (IANS) The bulls kept on going for the 13th consecutive week - the longest rally since August 2005 - with a key index adding 3.27 percent from last week amid expectations that the government would push through key reforms.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) rose for the 13th consecutive week, adding 3.27 percent or 478.3 points over the previous Friday’s close and ended trade at 15,103.55.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) aped the Sensex, logging a 3.1 percent increase from its last close to end at 4,448.95 points.
The Sensex hit an intra-week high of 15,257 points and low of 14,602, while the Nifty hit an intra-week high of 4,637 points and low of 4,450.
The broader market indices did a lot better, with BSE’s midcap index closing 6.98 percent higher than its previous weekly close, while the BSE smallcap index was up 7.88 percent.
“The current rally has more to do with liquidity than fundamentals. In such cases, a correction is imminent. However, investors are keenly awaiting government’s policy decisions and the budget,” said SMC Capitals equity head Jagannadham Thunuguntla.
“About one in five stocks have risen more than 50 percent during this rally and the Sensex has risen around 75 percent from its lows during these two and a half months or so. There will be a correction soon,” Thunuguntla told IANS.
Data with the markets watchdog, Securities and Exchange Board of India (SEBI), showed that foreign funds were net buyers during the week, having lapped up scrips worth $427 million.
“Foreign funds actually have not many places to go. Where will they invest?,” added Thunuguntla.
Sensex started the week with a bang, adding to its previous week’s gains to shut shop at its nine-month high as investors continued to buy scrips across sectors.
The Sensex, which opened at 14,746.51 points, ended at 14,840.63 points - 215.38 points or 1.47 percent above Friday’s close.
The Nifty followed the Sensex to end in the green, rising 1.82 percent to 4,529.9 points.
Tuesday saw Sensex dipping into the red as profit booking kicked in. However, buoyed by some last minute buying, it managed to crawl above Monday’s closing figure. At end of trade, Sensex was at 14,874.91 points - 34.28 points or 0.23 percent higher than its last close.
Though the Nifty followed the Sensex, it could not manage to end in positive terrain, shedding a marginal 0.08 percent to shut shop at 4,526.5 points.
Sensex breached the 15,000-mark in intra-day trading Wednesday, but closed on a flat note after its key stocks came under selling pressure.
It ended at 14,870.9 points - 4.01 points or 0.03 percent below Tuesday’s close.
The Nifty similarly traded flat, ending trade at 4,530.7 point, a marginal gain of 0.12 percent over its last close.
Broader benchmark indices however remained firm.
After ruling in the red for most of the day, Sensex fought its way back into the green Thursday to close above the 15,000-mark - the first time since Sep 2, 2008. It ended at 15,008.68 points - 137.78 points or 0.93 percent above its previous close.
Nifty aped the Sensex, ending trade at 4,572.65 points, reflecting a gain of 0.93 percent.
Friday saw the Sensex end trade on a 94 point rise at 15,103.55 points - 0.63 percent above its last close. The Nifty did not match the Sensex’s gains and closed at 4,586.9 points, a marginal gain of 0.31 percent.
The top gainers in the Sensex included Grasim (up 19.5 percent), Tata Motors (up 15.5 percent), Tata Steel (up 14.4 percent), Ambuja Cements (up 12.4 percent) and HDFC (up 11.3 percent).
Among losers were Reliance Infra (down 3.6 percent), SBI (down 2.7 percent), Reliance Industries (down 2.6 percent) and HDFC Bank Ltd (down 1.8 percent).
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