Stocks

Sensex soars over 850 points this week

PTI Mumbai | Updated on March 12, 2018 Published on October 15, 2011

SBI, ICICI Bank top gainers today Bolstered by better than expected Q2 performance by Infosys Technologies helped the Sensex to notch biggest point-wise gains in last six weeks, surging by over 850 points to end the week above 17K-mark at 17,082.69.

The market, however, shrugged off lower industrial production data and higher food as well as headline inflation close to double-digit announced in the week.

Buying was seen across-the-board as all 13 sectoral indices closed up between 0.95 per cent and 8.73 per cent with IT, teck, banks, consumer durable and realty segments leading the pack.

Twenty eight out of 30 Sensex-based scrips also closed with sharp to moderate gains, while only Coal India and Maruti Suzuki ended with marked losses.

Second largest heavyweight and IT major, Infosys Technologies, had on Wednesday reported 9.72 per cent rise in Q2 consolidated net profit, which was said to be above market expectations.

The company marginally cut its revenue guidance in dollar terms for the full year, following uncertain global economic environment, while sharply raised its rupee revenue guidance due to sharp depreciation in the rupee value.

Besides Infosys Technologies, other heavyweights like RIL, Tata Motors, ICICI Bank, ITC, HDFC, HDFC Bank, SBI, TCS and Bharti Airtel attracted good buying and closed with smart gains.

Easing fears of euro zone debt problems after German and France leaders reached an agreement to strengthen the European banks also boosted the market sentiment. Yesterday, the G20 supported bailouts for the debt-ridden countries in Europe.

The BSE 30-share barometer Sensex resumed up and remained in positive terrain for most of the week before ending at 17,082.69, a net rise of 850.15 points or 5.24 per cent.

The NSE broad-based Nifty also bounced back by 244.25 points or 5.00 per cent to settle the week at 5,132.30.

The Index of Industrial Production (IIP) data was better than July this year but slowed down to 4.1 per cent in August from 4.5 per cent in the same month last year, suggesting the slowdown in economy which might induce the central bank to pause on rate hikes.

However, food inflation eased to 9.32 per cent for the week ended October 1 from 9.41 per cent in the previous week and overall inflation too fell marginally to 9.72 per cent in September from 9.78 per cent in August, but stood still higher than the comfort level of the apex bank.

Meanwhile, the Prime Minister’s Economic Advisory Council (PMEAC) said that there was no sign of moderation in the rate of price rise to prompt the Reserve Bank to change its policy of monetary tightening.

Announcement of Q2 results, which have already started to trickle in, as well as future developments in Europe, which is under severe debt crisis, will provide future direction to the market, a broker said.

Top heavyweight, RIL is going to announce its results today, while the country’s largest software exporter, TCS will declare its performance on Monday, October 17.

Foreign Institutional Investors (FIIs) were net buyers to the tune of Rs 1,685.26 crore during the week, including provisional data of October 14.

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Published on October 15, 2011
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