Stretching gains for the fourth straight week on the back of rise in IT, FMCG, metal and healthcare shares, the BSE benchmark Sensex rallied by another 92 points to end the shortened week at 17,783.21.
The BSE and National Stock Exchange (NSE) were closed on August 20 on the occasion of “Ramzan Id”.
Persistent capital inflows into equity markets kept the market sentiment upbeat as they pumped in Rs 959 crore during the week, including the provisional data of August 24.
The 30-share Sensex surged to a five-month high of 17,972.54 on Thursday on a slew of positive developments like Infosys winning a case in the US, heavy rain in some parts of the country and a fall in inflation.
The NSE 50-share Nifty also ended higher by 20.40 points, or 0.38 per cent, to 5,386.70. It has hardened by 286.85 points, or 5.62 per cent, over the same period.
Stretching gains for the fourth straight week on the back of rise in IT, FMCG, metal and healthcare shares, the BSE benchmark Sensex rallied by another 92 points to end the shortened week at 17,783.21. It has hardened by 286.85 points, or 5.62 per cent, over the same period.
“IT stocks were at the forefront after the country’s leading software exporter, Infosys, notched handsome gains as a US Court ruled in favour of the company in an employee harassment case. Also, the stability in the US supported the IT stocks,” said Dipen Shah, Head of PCG (Private Client Group) Research, Kotak Securities.
A marginal fall in retail inflation to 9.86 per cent in July from 10.02 per cent in June also some what boosted the sentiment.
World stocks rose on hopes that policymakers in the US and China will ease monetary policy to boost growth in world’s two biggest economies.
However, gains were capped as rally in the global markets fizzled out on August 24 after a US Federal Reserve official poured cold water on expectations that another round of stimulus was on its way.
Brokers said investors and funds booked profits in the second half of the session amid worries that pace of economic reforms could be stalled with the Opposition BJP-led NDA sticking to its demand for Prime Minister Manmohan Singh’s resignation on the coal block allocation issue.
The domestic sentiment remained bearish as the Reserve Bank, in its FY12 Annual Report released this week, stated inflation remains the cornerstone of monetary policy action.
Realty, refinery, capital goods, consumer durable and banking stocks suffered the most on profit booking.
Over a million employees of public sector banks went on a two-day nationwide strike (Aug 22-23) opposing banking sector reforms and outsourcing of non-core activities, affecting stock market fund flows, said analysts.
Bharti Airtel dropped by 5.38 per cent on reports that foreign brokerage Credit Suisse has downgraded it.
The market may remain volatile in the next week in view of expiry of futures and options segment August contract on Thursday, the analysts added.