Stimulus helps equities retain gains during week (Weekly Roundup)December 13th, 2008 - 4:44 pm ICT by IANS
Mumbai, Dec 13 (IANS) The Indian equities market posted healthy gains during the week despite concerns about the troubled US auto market, with a key index gaining 724.87 points or 8.08 percent over its close Dec 5 thanks to the fiscal stimulus package the government announced Dec 7. The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed at 9,690.07 points Friday, compared to 8,965.20 points Dec 5.
Similarly, the broader-based 50-share S&P CNX Nifty of the National Stock Exchange (NSE) finished the week at 2,921.75 points, up 207.35 points or 7.63 percent from its closing the week earlier at 2,714.40 points.
The BSE midcap ended the weekly trade at 3,050.48 points, up 157.53 points or 5.44 percent from its previous week’s close at 2,892.95 points.
The BSE smallcap finished the week 207.42 points or 6.2 percent higher at 3,530.96 points from last week’s 3,323.54 points.
The week opened strong following measures taken by the central Reserve Bank of India (RBI) and the government to boost a slowing economy. The central bank slashed key lending and borrowing rated Dec 6, while the government Dec 7 announced a 4 percent excise duty cut and Rs.200 billion additional expenditure among other measures to pump prime the economy.
The Sensex finished Monday at 9,162.62 points, up 197.42 points or 2 percent while the Nifty closed 2,784 points, up 69 points or 2.56 percent from its previous close.
The stock markets remained closed Tuesday on account of Eid-ul-Zuha, and performed well Wednesday, with the Sensex closing at 9,654.9 points, up from 9,162.62 of its previous close.
The Nifty Wednesday did equally well with a rise of 5.18 percent or 144 points to close at 2,928.25 points.
However, the Sensex fell a marginal 0.1 percent or 9.44 points Thursday to close at 9,645.46 points, as investors capitalised on the previous two days of gains.
The Nifty followed a similar trend and fell 0.28 percent or 8.1 points to shut shop at 2,920 points.
Friday saw the Sensex plummeting in the morning session as news of the collapse of the US auto bailout plans came out, but recovered over 400 points during the day’s trade to close at 9,690.07 points, an increase of 44.61 points or 0.46 percent higher than its previous.
Even the announcement of the Index of Industrial Production turning negative first time in 15 years did not have much of a dampening effect, as the 50-share S&P CNX Nifty of the NSE also recovered over 100 points from its lowest level and closed at 2,921.75, a gain of 0.04 percent from its close Thursday close.
“The market is currently in an up-trend and will continue to discount all news, good or bad, in the short term,” said Neera Jain, chief technical analyst at stock analysis firm CRN India.