The BSE benchmark Sensex ended in green for the fifth consecutive week on persistent buying mainly in realty, banking and metal counters, on the back of good capital inflows.
Expectations of measures from the Government for reviving a slowing economy also boosted the market sentiment.
Continued buying in small- and mid-cap shares by retail investors played a major role in extending the rally. The BSE Mid-Cap index rose 2.6 per cent, while BSE Small-Cap index gained 4.26 per cent, outperforming the Sensex.
The 30-share Sensex rose 91.14 points or 0.52 per cent to end the week at 17,521.12. The S&P CNX Nifty of NSE gained 38.05 points or 0.72 per cent to settle at 5,316.95.
The Sensex has gained 1,555.96 points or 9.75 per cent in the last five weeks, while the Nifty firmed up by 475.35 points or 9.82 per cent.
Foreign Institutional Investors (FIIs) have bought shares worth net Rs 4,755.70 crore so far till July 4.
Prime Minister Dr Manmohan Singh, who also holds the Finance portfolio, said last month that he is chalking out plans for the country’s economic revival.
“Strong FII fund flows and expectations of measures from the government to boost the sagging economy helped the market to remain firm,” said Mr Alex K. Mathews, Head-Technical and Derivatives Research, Geojit BNP Paribas Financial Services.
Mr Shubham Agarwal, Associate V-P and Senior Technical Equities Analyst, Motilal Oswal Securities, said, “Sentiment was positive on hopes of hike in FDI limit in retail and favourable decision on GAAR issue. However, rupee’s weakness remains a major concern.”
The Planning Commission Deputy Chairman Mr Montek Singh Ahluwalia’s comments yesterday that achieving average growth rate of 9 per cent in the next five years is not possible, weighed on the market.
“The share market has travelled a long way from a low of 4,760 in May to a high of 5,350 in early July. During this period, market absorbed all bad news such as rating downgrades, stock downgrades, global worries, falling GDP, falling rupee, concerns over widening fiscal deficit and finally inflation not coming under control even after huge monetary measures over the last three years. Even FII flows are positive,” Mr Kishor Ostwal, CMD, CNI Research Ltd, said.
“Post GAAR issue on March 16, the outflows were not that severe... The change of guards in the Finance Ministry has renewed the hope that the Finance Minister will pull something out of the hat to please the investors. The only worry factors today are the high rate of interest and monsoon factor,” he added
Among the 30 Sensex shares, 16 rose and the remaining declined.
India’s largest listed telecom operator by sales Bharti Airtel topped the Sensex gainers in the week. The stock jumped 5.41 per cent to Rs 321.50 on reports that cellular services providers will continue to offer third-generation services on a pan-India basis.
Other gainers from the Sensex pack were Sterlite (4.77 per cent), HDFC (4.46 per cent), Maruti Suzuki (4.01 per cent), HDFC Bank (3.51 per cent), ICICI Bank (3.96 per cent), Cipla (3.63 per cent), Hindalco Ind (3.46 per cent), M&M (3.42 per cent), SBI (2.73 per cent) and Tata Steel (1.39 per cent).
However, Jindal Steel fell 3.06 per cent followed by Hero MotoCorp 2.68 per cent, TCS 2.45 per cent, ITC 2.41 per cent, Infosys 2.35 per cent, ONGC 2.13 per cent and Bajaj Auto 2.06 per cent.
Among the major indices, the BSE-Realty rose 4.6 per cent followed by the BSE-Consumer Durable 3.87 per cent, the Bankex 3 per cent, the BSE-Metal 2.01 per cent , the BSE-Capital Goods 1.26 per cent, while the BSE-IT fell 1.91 per cent and the BSE-FMCG 1.64 per cent.
Total turnover on the BSE and NSE was Rs 11,157.70 crores and Rs 50,600.39 crore, respectively against the previous week-end level of Rs 13,370.03 crore and Rs 48,809.00 crore.