The BSE benchmark Sensex shot up 189 points to end this week at 19,915.95 — after topping the 20,000 mark — on fresh buying by operators and investors despite partial shutdown of the US Government.
The Government’s move to infuse funds to enable PSU banks to offer cheaper retail loans was cheered by investors. The rise in rupee value against the dollar and sustained foreign capital inflows into equity market boosted the sentiment.
Renewed buying on expectations that economic growth would improve in the second half of the fiscal year, too, aided the firm trend.
The S&P BSE Sensex resumed lower at 19,643.89 and dropped further to 19,264.72. But the 30-share index recovered afterwards to 20,052.00 before ending the truncated week at 19,915.95, posting a gain of 188.68 points or 0.96 per cent.
The NSE 50-share barometer, Nifty, firmed up by 74.10 points or 1.27 per cent to settle at 5,907.30. The stock market was closed on October 2 on account of Gandhi Jayanti.
CAD, auto sales
The market received a fillip after the current account deficit (CAD) numbers came better-than-expected and auto sales picked up last month, helping investors to shrug off concerns about the US Government shutdown.
“Trading sentiment was cautious after the news of US Government shutdown. However, markets remained largely unaffected by this development,” said Rakesh Goyal, Senior Vice-President at Bonanza Portfolio Ltd.
“CAD widened to 4.9 per cent of GDP at $21.8 billion in the April-June quarter. However, it came better-than-expected,” he added.
Auto stocks vroom
The battered auto stocks gained on higher September sales reported by Maruti Suzuki, Hero MotoCorp and TVS, and also a Rs 3.05 a litre cut in petrol prices, the first reduction in over five months.
“With the US Government shutdown, the likelihood of the Fed tapering its quantitative easing programme in the immediate future has reduced, helping the Indian equity and currency markets,” Goyal said.
A delay in scaling down of the Federal Reserve’s monetary stimulus plan would ease concerns about investors pulling out from emerging markets, including India.
Average growth target
Meanwhile, the Planning Commission said that it will revisit the annual average growth target of 8 per cent for the 12th Plan period (2012-17) and indicated that GDP may expand by over 5 per cent in the current fiscal.
Persistent foreign capital inflows into the equity market also buoyed the sentiment. FIIs invested Rs 1,096.56 crore during the week, including the provisional figure of October 4.
Total turnover on the BSE and NSE fell further to Rs 7,053.40 crore and Rs 41,477.61 crore, respectively, from the previous week’s level of Rs 8,461.06 crore and Rs 55,135.00 crore.
Twenty one out of the 30 Sensex stocks ended in green, while eight finished in red and BHEL ruled steady.
Among the major sectoral indices, S&P BSE-Realty rose 4.24 per cent, S&P BSE-Bankex 2.9 per cent, S&P BSE-Auto 2.73 per cent, S&P BSE-IT 2.38 per cent and S&P BSE-Teck 2.03 per cent.
On the other hand, BSE-FMCG fell 1.83 per cent, followed by BSE-Power 1.1 per cent and BSE-PSU 0.41 per cent.
Among the Sensex, major gainers were Bajaj Auto 6.38 p er cent, HDFC Bank 5.02 per cent, TCS 4.4 per cent, Maruti Suzuki 4.38 per cent, Hindalco Ind 3.51 per cent, Tata Motors 2.91 per cent, HDFC 2.04 per cent, GAIL(India) 1.85 per cent, Reliance Industries 1.57 per cent and Cipla 1.14 per cent.
Major losers were NTPC 3.97 per cent, ONGC 3.52 per cent, ITC 2.52 per cent, HUL 2.06 per cent, Dr Reddy’s Labs 1.78 per cent and Tata Power 0.86 per cent.
The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) were closed on October 2 on account of 'Gandhi Jayanti'.