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The stock market snapped a 2-week losing streak with the benchmark Sensex recovering by over 110 points during the week under review triggered by sustained capital inflows amid early arrival of monsoon rains in Kerala.
Besides, auto, refinery and metal segments, all other sectoral indices closed the week with sharp to marginal gains between 3.61 per cent and 0.73 per cent.
Foreign Institutional Investors (FIIs) were net buyers throughout the week and they bought shares worth Rs 2,365.56 crore during the week, taking the total to Rs 4,023.26 crore in seven straight sessions since May 26, including the provisional data of June 3.
The market shrugged off slow economic growth data during the fourth quarter ended March 31, 2011 announced by the Government on Tuesday.
The Gross Domestic Product (GDP) grew by a slower-than-expected 7.8 per cent during January-March against 9.4 per cent in the corresponding period of the previous year. However, for the entire fiscal, GDP improved to 8.5 per cent from 8.0 per cent in 2009-10.
Brokers said investors bought stocks available at lower levels and partly because they felt that the apex bank might be less aggressive on tightening monetary policy after the slowdown in economy in Q4 and also due to fall in food inflation to 8.06 per cent for the week ended May 21 from 8.55 per cent in the preceding week.
Higher exports too aided the market sentiment. Exports in April grew 34.42 per cent, over the same month last year, while imports picked up 14.13 per cent.
The Bombay Stock Exchange 30-share barometer moved the week in a range of 18,672.65 and 18,199.52 before concluding at 18,376.48, a net rise of 110.38 points or 0.6 per cent. The broad-based NSE 50-share Nifty also recovered by 40.65 points or 0.74 per cent to 5,516.75.
Weak economic data from the US, which affected the global sentiment, later put pressure on the market with auto, refinery and metal counters suffering the most.
“A global sell off in equities spooked Indian markets in the last two days. US jobs report and debt crisis in the euro zone will be important near-term catalysts for risky asset classes,” said Mr Amar Ambani, Head of Research at IIFL.
“A drop in food inflation and steady sustained inflows from FIIs lent good support to the market,” he added.
Second-line counters outperformed the Sensex as retail investors started their buying spree, resulting in the BSE-Midcap and BSE-Smallcap index spurting by 2.46 per cent and 1.59 per cent.
Among the sectoral indices, BSE-Consumer Durables flared up by 3.61 per cent, BSE-FMCG 2.83 per cent, BSE-Capital Goods 2.59 per cent and BSE-Realty by 2.04 per cent while BSE-Auto declined by 1.94 per cent, BSE-Oil & Gas 0.78 pct and BSE-Metal by 0.59 pct.
In all, 21 out of the 30 Sensex counters finished with gains while others ended with losses. RCom rose 9.88 per cent, HUL 5.24 per cent, L&T 4.49 per cent, SBI 3.5 per cent, Bajaj Auto 4.38 per cent, DLF 3.73 per cent, HDFC Bank 2.25 per cent, NTPC 3.29 per cent, Tata Power 3.52 per cent, Bharti Airtel 1.67 per cent, Cipla 1.9 per cent and Jaiprakash Associates 3.16 per cent.
However, Tata Motors declined by 5.84 per cent, M&M 4.97 per cent, Hindalco 4.1 per cent, BHEL 1.28 per cent, Tata Steel 2.02 per cent, ICICI Bank 1.89 per cent and RIL by 1.07 per cent.
Total turnover at BSE and NSE was relatively low at Rs 13,655 crore and Rs 54,796 crore from Rs 13,782 crore and Rs 55,258 crore last week, respectively.
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