The Hindu Business Line : Sensex, Nifty bounce by 2% this week

MUMBAI: Key indices Sensex and Nifty bounced by nearly 2 per cent over the week even as global markets are expected to influence activity at home amid the possibility of FII pullout at the year-end.

Technically, increasing build up in the Nifty positions as also in the futures and options indicate that the market is unlikely to continue with the upward movements.

Analysts feel that foreign institutional investors (FIIs) which made record investments so far in the current calendar year, may book profits in the next two months as it marks the end of their accounting year.

Over the week, the Bombay Stock Exchange 30-share index ended at 16,158.28, a net rise of 262 points or 1.65 per cent over its last week-end’s close. Similarly, the National Stock Exchange’s broader 50-share Nifty gained 84.45 points or 1.79 per cent at 4,796.15 from the previous week-end close.

The dramatic bounce came after a two-week slide took the Sensex below 16,000-level to a ten-week intra-day low of 15,330.56 on November 3, as the Government rushed to the rescue of market, putting at rest speculation about withdrawal of financial package s given a year ago.

As per data available with the market regulator SEBI, FIIs made investments of more than $69 billion so far in the current calendar year.

While the Government asserted that stimulus measures would continue and there would not be any curbs on capital inflows, the Planning Commission pitched for “aggressive’’ disinvestment, and said the proceeds from sale of Government shares in PSUs should be utilised for new investment projects.

The Government’s statements resulted in a sharp pullback rally on November 5, leading to the Sensex registering the biggest single day gain in more than five months.

After plunging by nearly 6 per cent on Monday, Reliance Industries rebounded to end the week higher by 1.32 per cent.

Major gainers from the Sensex pack included Bharti Airtel (9.4 per cent), Jaiprakash Associates (8.4 per cent), ICICI Bank (7.49 per cent), Tata Steel (5.96 per cent), Sterlite Ind (4.21 per cent), Mahindra & Mahindra (5.29 per cent), Maruti Suzuki (5.01 per cent) and Reliance Infra (3.2 per cent).

Tata Power, however, dropped by 5.34 per cent, ACC 4.16 per cent, Hindustan Unilever 3.52 per cent and Hero Honda by 2.29 per cent.

The trading volume fell sharply during the week. The turnover on the BSE and the NSE was Rs 22,255 crore and Rs 67,284 crore compared with Rs 27,550 crore and Rs 95,136 crore, respectively during last week. — PTI

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