The Hindu Business Line : Cues trigger upmove

Following two consecutive weeks of negative closing, the BSE Sensex managed to end in the green at 9092 by gaining 177 points over the previous week amid unprecedented terrorist attacks at the financial capital. The CNX Nifty surged 61 points, closing at 2755.

The bailout of Citigroup by the US Government cheered our market modestly on Monday, while European and American markets soared. The US President-elect, Mr Barack Obama, naming his economic board and the Federal Reserve preferring to buy enormous amounts of mortgage-backed securities were the other global triggers over the past week.

On November 26, the People’s Bank of China cut its one-year lending rate by 108 basis points to 5.58 per cent to prevent economic slump, the most in 11 years. This rate cut added fuel for further rally in global equities.

However, trading was suspended on Thursday due to terrorist attacks in many places of Mumbai and the ensuing uncertainty.

The November futures and options settlement of the market was postponed to Friday; Sensex advanced 66 points on that session.

BSE Sectoral Indices

BSE IT index is the top gainer among the sectoral indices by gaining four per cent during the week.

BSE TECk index surged 3.8 per cent and BSE Power, FMCG and health care indices settled for the week by rising more then 2.5 per cent.

The BSE Oil & Gas, The Bankex and Auto indices witnessed a move of a per cent. BSE metal, BSE Consumer Durables and BSE PSU finished with neutral.

BSE Realty index was the top sectoral losers, which tumbled 5 per cent and it recorded a new 52-week low of 1,507, during the past week. The BSE Capital Goods was the other major loser that fell by 2.5 per cent.

Realty & Hotels

Some of the realty stocks such as Unitech, Indiabulls Real Estate and Housing Development & Infrastructure recorded fresh 52-week low over the last week.

Indian Hotel Company plummeted 17 per cent to Rs 40.20 on Friday as the terrorist attack caused extensive damages to the Taj Hotel, which is located in south Mumbai. On the other hand, East India Hotels gained 5.22 per cent as the security personnel cleared the terrorists from The Oberoi Hotel. Leelaventure declined 3.06 per cent and Taj GVK Hotels closed flat at Rs 44.8.

Commodities

Crude oil jumped $4.5 or 9 per cent, sustaining above the $50 mark by ending the week at $54.4.

Gold rose 2.5 per cent or $20 an ounce and is hovering around $820 an ounce. Silver and platinum gained 6 and 7 per cent respectively by closing at $10.24 and $871.

The rupee closed at 49.55, testing the significant level at 50.

Inflation for the week ended November 15 stands at 8.84 per cent, marginally down from the previous week’s yearly rise of 8.90 per cent.

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