Sensex gains 1.67 per cent on global support | business | Hindustan Times
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Sensex gains 1.67 per cent on global support

Indian bourses continue to shine after it broke the longest weekly winning streak last week and gained 1.67 per cent amid a forecast of below normal monsoon this year and negative FII activity in the week under review.

business Updated: Jun 27, 2009 15:05 IST

Indian bourses continue to shine after it broke the longest weekly winning streak last week and gained 1.67 per cent amid a forecast of below normal monsoon this year and negative FII activity in the week under review.

The market had fallen back by 716.05 points, or 4.70 per cent, after rising by a whopping 6,912 points, or 83 per cent, during the long 14-weekly gaining streak.

Analysts attributed this dramatic reversal to buoyant global cues and investors' rollover of positions to derivatives July series that expired on June 25.

They also visualised a range-bound and volatile trade during next week ahead of the full budget that is expected to be a major trigger for the market.

Infrastructure, Capital Goods and Bank stocks attracted brisk activity during the week with high rollover of positions was seen in these sectors on strong optimism that they will get major thrust in the forthcoming budget.

In a high level of volatility in the week to June 27, the Bombay Stock Exchange 30-share barometer recovered by 242.75 points to end the week at 14,764.64 from its previous weekend's close.

The broader 50-share Nifty of the National Stock Exchange also gained 61.90 points or 1.44 per cent to finish the week at 4,375.50 from its last weekend's close.

The Midcap and the Smallcap indices again outperformed the key indices, rising sharply by 4.28 per cent and 3.25 per cent respectively.

The market is likely to a direction from the economic survey to be presented on July 2 followed by the Railway Budget on July 3.

The market, however, continued get pressure at higher levels on concerns about the delay in moonson and its impact on the farm sector which could significantly affect economy.

Other negative factor is the sudden FII slowdown. As per Sebi data, Foreign Institutional Investors sold shares worth USD 513.10 million in the initial four days of the week.

They, however, were net buyers to the tune of Rs 551.14 crore on Friday, as per the provisional figures on the NSE.

Auto and Metal stocks were hit during the week. Their respective indices fell by 1.13 per cent and 0.97 per cent on fears of hike in fuel prices after the global oil prices firmed up during the week.

During the week, the total business volume on the BSE and the NSE fell sharply to Rs 27,751 crore and Rs 94,441 crore from last week's turnover of Rs 34,090 crore and Rs 1,02,410 crore respectively.