Indian equities end week on a high as global cues strengthen | business | Hindustan Times
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Indian equities end week on a high as global cues strengthen

Indian equities markets climbed several notches into the green in the week just ended, enthused by strong sentiments across global bourses and short covering on account of futures and options contract expiry on Thursday.

business Updated: Mar 28, 2009 13:34 IST

Indian equities markets climbed several notches into the green in the week just ended, enthused by strong sentiments across global bourses and short covering on account of futures and options contract expiry on Thursday. A key index closed 12.06 per cent higher than its previous weekly close.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended on Friday at 10,048.49 points, with a gain of 1,081.81 points, or 12.06 per cent, over the previous week's close of 8,966.68 points.

Similarly, the S&P CNX Nifty of the National Stock Exchange (NSE) gained 10.7 per cent from its last close to end at 3,109 points.

The Sensex hit an intra-week high of 10,127 points and a low of 9,040, while the Nifty hit an intra-week high of 3,123 points and low of 2,807.

The BSE midcap index ended 6.27 per cent higher than its previous weekly close of 2,934.16 points, while the BSE smallcap index was up 3.97 per cent.

Cabinet secretary KM Chandrasekhar was quoted as saying the capitals markets had sensed an economic recovery and hence the rally.

Market analysts, however, did not share his optimism.

"This might sound pessimistic but sadly, the rally is not sustainable. I wish it was a permanent recovery, but it's not," said Jagannadham Thunguntula, equity head at SMC Capitals.

"The futures and options closing helped push the Sensex upwards and global cues helped, but markets are still being driven by speculation rather than any sound investment strategy," he added.

"They will soon fall back," Thunguntula contended.

Markets started the week on a good note as news came in that the Barrack Obama administration in the US was planning to buy $1 trillion worth of toxic assets, which sent most bourses across the world spiralling.

The Sensex soared 5.1 per cent to shut shop at 9,424.02 points - a rise of 457.34 points on Monday.

Nifty gained 4.73 per cent from its last close to end trade at 2,939.9 points.

The rally lost steam on Tuesday as investors took advantage of higher valuations and booked profits in select stocks, leading to a key index sliding from the day's high at day's close.

The Sensex closed at 9,471.04 points - a marginal rise of 47.02 points or 0.5 per cent.

However, the Nifty closed lower, shedding 0.04 per cent from its last close to end trade at 2,938.7 points.

A surprise late rally resulted in the Sensex surging by 2.08 per cent on Wednesday to end trade at 9,667.9 points - a rise of 196.86 points.

The Nifty also closed higher, gaining 1.55 per cent from its last close to end trade at 2,984.35 points.

Markets gathered momentum on Thursday as traders scampered to cover their positions, resulting in the Sensex shutting shop above the psychologically important 10,000-mark, after about two months.

It closed at 10,003.1 points - a rise of 335.2 points or 3.47 per cent, it highest close since January 6.

The Nifty gained 3.28 per cent from its last close to rule at 3,082.25 points.

Friday saw markets inch upwards with the Sensex ending trade 0.45 per cent higher than its previous close, after fluctuating around its previous closing figure through most part of the day.

The Sensex shut shop at 10,048.49 points - a rise of 45.39 points, while the Nifty gained 0.83 per cent from its last close to rule at 3,107.8 points.

The top gainers on the Sensex were Tata Steel, up 26.6 per cent; HDFC Bank, up 19.3 per cent; ICICI Bank, up 19.2 per cent; Reliance Capital, up 18.8 per cent; and SBI up 17.8 per cent.

Data with market watchdog Securities and Exchange Board of India (SEBI) for four days of the week showed that foreign funds were net investors in equity, even though they were heavy sellers in the debt markets. Data for Friday was not available with the regulator.

Their net investment during the week amounted to $337.7 million.