Both key indices, the S&P BSE Sensex and CNX Nifty, snapped their five-week losing spree and spurt by nearly 4 per cent to log one-month closing highs during the week.

There was fresh buying mainly in realty, banking, capital goods, refinery and metal sectors on renewed hopes of rate cut by RBI amidst spectacular rally in global markets.

Persistent foreign fund inflows into Indian equity markets also boosted the market sentiment.

The Bombay Stock Exchange 30-share barometer closed in the red on Monday on weak global cues after China last weekend announced fresh measures to cool property market and amid fears over global growth outlook and weak data from Europe.

However, on second day of the week, the market staged a smart recovery and gained further on hopes of a cut in key interest rates by RBI in its monetary policy meeting on March 19, supporting rate sensitive stocks from realty, auto and banking sectors.

The sentiment got further boost after indications of more sops, including relief for exporters, by Finance Minister P Chidambaram on late Monday to revive economic growth.

He assured India Inc that a clutch of decisions, mainly on indirect taxes, would be announced during the debate on Budget and Finance Bill in Parliament.

The S&P BSE Sensex rallied for four days and closed the week up 764.71 points, or 4.04 per cent, at one-month high of 19,683.23. In the last five weeks of falling trend, the Sensex had tanked by a hefty 1,185 points, or 5.89 per cent.

The NSE 50-share Nifty also rose by 226 points, or 3.95 per cent, to scale one-month high of 5,945.70. It had lost 354.95 points, of 5.84 per cent, in the last five weeks.

The gains in the S&P BSE Sensex were biggest in the current calendar year and since last week of November 2012.

A positive jobs report pushed the Dow Jones Industrial Average to record high in this week and better-than-expected Chinese exports helped boost Asian and European stock markets.

Foreign Institutional Investors (FIIs), the main market mover, picked up shares worth Rs 3,089.68 crore during the week including provisional figure of March 8.

Brokers said the upsurge in the market was mostly attributed to expectations of an interest rate cut by the Reserve Bank of India in its policy review this month.

Investors are now looking forward to industrial output data due next week, traders said.

Dipen Shah, Head of PCG (Private Client Group) Research, Kotak Securities said expectation of further reforms from the government has improved the sentiment.

“The FM seems to be in an overdrive mode promising more announcements and steps to revive growth and investment. The undertone remains slightly positive for the coming days,” said Amar Ambani, Head of Research, IIFL.

RIL jumped 5.13% after Morgan Stanley reportedly upgraded its rating on the stock. Engineering major L&T shot up by 6.86 per cent to Rs 1,496.10 after CLSA Asia-Pacific Markets and Goldman Sachs upgraded rating during the week.

27 scrips out of the 30-share Sensex pack finished with gains while only three ended lower.

From the Sensex pack, 27 counters closed with gains while HUL, Bajaj Auto and NTPC closed with losses.

Other gainers from the Sensex pack were Sterlite Ind (8.37 per cent), ICICI Bank (7.79 per cent), Cipla (5.93 per cent), Hero MotoCorp (5.88 per cent), HDFC Bank (5.70 per cent), Wipro (5.66 per cent), TCS (5.64 per cent), SBI (5.49 per cent), Tata Motors (5.23 per cent), Tata Steel (4.95 per cent), Dr Reddy’s Lab (4.67 per cent), HDFC (4.55 per cent), Bharti Airtel (3.91 per cent), ONGC (3.45 per cent), BHEL (3.19 per cent), Gail India (2.86 per cent), Hindalco (2.22 per cent) and ITC (2.37 per cent).

Among the sectoral indices, the S&P BSE-Realty rose by 7.42 per cent followed by S&P Bankex 5.50 per cent, S&P BSE-CG 5.31 per cent, S&P BSE-Oil&Gas 4.36 per cent, S&P BSE-IT 3.67 per cent, S&P BSE-Metal 3.60 per cent, S&P BSE-Teck 3.43 per cent, S&P BSE-HC 3.09 per cent, S&P BSE-Auto 2.37 per cent, S&P BSE-PSU 1.87 per cent, S&P BSE-Power 1.86 per cent and S&P BSE-FMCG 1.76 per cent.

The S&P BSE-Midcap and S&P BSE-Smallcap also rose by 2.63 per cent and 2.23 per cent respectively on the back of fresh buying from retail investors, but underperformed the Sensex.

The total turnover at BSE and NSE dropped to Rs 9,624.25 crore and Rs 54,093.34 crore respectively as against the last weekend’s level of Rs 11,598.65 crore and Rs 66,171.13 crore.

(This article was published on March 9, 2013)
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