Sensex gains over 5 pc, puts on best performance in 6 weeks
Indian equities markets notched up handsome gains this week with benchmark indices gaining about 5% as traders took hope from signs of concrete steps being taken by European countries to contain the debt crisis.business Updated: Oct 15, 2011 15:14 IST
Indian equities markets notched up handsome gains this week with benchmark indices gaining about 5% as traders took hope from signs of concrete steps being taken by European countries to contain the debt crisis.
A higher than expected earnings performance by IT bellwether Infosys helped software stocks climb higher on expectations of similar results from other heavyweights in the sector.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) put on the best performance in six weeks as it regained the 17,000-mark.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended the week at 17,082.69 points, up 5.24% or 850.15 points from its previous week's close at 16,232.54 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange also rose 244.25 points or 4.99 %during the week at 5,132.3 points.
Broader markets too rose with the BSE midcap index closing 3.87 %higher, while the BSE smallcap index ended 2.77% up compared to last Friday's close. The BSE 500 index too rose 4.54%.
"The rally to 17,000 was led by the IT heavyweights including Infosys, TCS and Wipro. Infosys came up with strong guidance which added momentum to the IT stocks. Besides, banking stocks also did well with that index rising by about 7-8 %for the week," said Sanjeev Zarbade, vice president, private client group research, Kotak Securities.
"For the global equities, the week has been good as markets recovered from the lows. The recovery has been driven by greater coordination and solidarity between European Union nations in finding a resolution to the debt crisis. For the week, almost all major markets performed in line and posted gains in the range of 3-4%," he added.
Metal and banking stocks led the recovery in the markets towards the end of the week. Sterlite Industries and Jindal Steel surged more than 8%.
Prominent Sensex gainers on a weekly basis were: Tata Motors, up 17.3 %at Rs.179.90; Jindal Steel, up 14.2 %at Rs.525.15; Reliance Industries, up 10.3 %at Rs 866.80 and ICICI Bank, up 9.2% at Rs 890.45.
Losers included Maruti Suzuki, down 7% at Rs 1,028.45; Coal India, down 3.3 %at Rs 322.30; Tata Power, down 1% at Rs 100, and ONGC, down 0.5% at Rs 266.65.
Other Asian markets too rose during the week. Compared to last Friday, Japan's Nikkei rose 1.65% to close at 8,747.96 points and Hong Kong's Hang Seng index advanced 4.49% to end at 18,501.79 points.
On weekly basis, the Shanghai Composite index put on 3.06% to close at 2,431.37 points.
European markets also rose as a consensus seemed to be building on the expansion of the European Financial Stability Facility -- a fund which is supposed to be used to ease out countries from the debt crisis.
Britain's FTSE 100 gained 3.07% in the week to close at 5,466.36 points. The German DAX advanced 5.14% and ended at 5,967.2 points, while the French CAC 40 index moved up 3.95% to close at 3,217.89 points on Friday.
Wall Street too saw handsome gains.
The Dow Jones Industrial Average closed 4.88% up on a weekly basis and closed at 11,644.49 points, while the S&P 500 rose 5.98% at 1,224.58 points on Friday.
The technology-heavy Nasdaq was the best performing among other indices, rising 7.6% to end the week at 2,667.85 points.