Markets surge during the week on robust buying, global cues

PTI Mumbai | Updated on March 12, 2018 Published on October 19, 2013

Markets surged for the third consecutive week, as both the key indices scaled their highest levels since 2010, on persistent buying from investors, on sustained capital inflows from foreign funds, coupled with encouraging economic growth in China.

The sentiment was also boosted on speculation that Federal Reserve could maintain monetary stimulus next year on concerns that the 16-day partial US government shutdown, which ended this week, may curb growth in the world’s largest economy.

The BSE benchmark Sensex and Nifty climbed to their highest peaks in almost three years on value buying across the board triggered by global cues as concerns about US tapering eased and China’s economic growth picked up.

The Sensex resumed slightly higher at 20,534.61 on initial buying, but dropped to 20,375.42 on fresh selling in view of rising inflation figure amidst lowering of forecast for India’s economic growth by the World Bank.

However, it recovered to 20,932.23 before ending at 20,882.89, showing a gain of 354.30 points, or 1.73 per cent, over the previous close. The 30-share BSE index notched up to its highest close since 20,932.48 on November 9, 2010.

The NSE 50-share Nifty also rose by 93.15 points, or 1.53 per cent, to 6,189.35. The IT index has also risen by 356.15 points, or 6.11 per cent, during the three weeks.

Meanwhile, inflation, as measured by Wholesale Price Index, rose to a seven-month high of 6.46 per cent in September from 6.1 per cent in August and 5.85 per cent in July.

The World Bank lowered its forecast for India’s GDP growth to 4.7 per cent in FY14 from 6.1 per cent estimated earlier.

Published on October 19, 2013
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