Positive cues from developed markets and foreign inflows fuelled a 5.2 per cent rally in the BSE Sensex over the past week. Shrugging off fears over rising interest rates and higher inflation, which was at 10.1 per cent, the broader BSE 500 index was up 4.4 per cent. BSE Mid- and small-cap indices gained 3.25 and 2.6 per cent respectively, capping off a great week for domestic markets.
Apparently, market participants seemed to be in the ‘bottom-fishing' mode with even the BSE Realty index having a strong week, gaining 9 per cent. The index has had a dreadful 2011 and has shed 22 per cent . A fat gainer among the realty majors was DLF which was up over 13 per cent. Other strong gainers included Unitech and HDIL which were up 8.7 per cent and 6 per cent respectively.
The BSE Bankex was another healthy gainer and was up six per cent. Expectations of lower market borrowing by the government aided several stocks in the space, including
The BSE Metals index posted a gain of 3.7 per cent with global prices of steel and other metals stabilising, following a minor collapse sparked by the Japanese quake. The largest gainer was iron ore producer
Aluminium producer Nalco shed about six per cent as the company effected a price cut early in line with international prices. It was a happening week for other members of the steel pack as Tata Steel gained 2.9 per cent on closure of the sale of its Teeside plant.
Bucking the trend of several peers such as Dr.Reddys, Lupin, Piramal Health and Glenmark which gained between between 3 and 3.7 per cent, Indian generic pharma major Ranbaxy Laboratories shed six per cent over concerns that it may not be allowed to release a low cost anti-cholesterol drug in the US market.