Sensex rallies to 8-week high on strong FII's buying
The BSE benchmark Sensex rallied by another 522 pts for the second consecutive week to 8-week high at 18,762.80 on strong buying by operators and investors on the back of aggressive buying by foreign institutional investors and easing of Greece's debt worries.business Updated: Jul 02, 2011 13:28 IST
The BSE benchmark Sensex rallied by another 522 pts for the second consecutive week to 8-week high at 18,762.80 on strong buying by operators and investors on the back of aggressive buying by foreign institutional investors (FIIs) and easing of Greece's debt worries.
Fast moving consumer goods, realty, metal, capital goods and banking counters were the major gainers of the week as most of the indices ended higher by 1.59% at 4.24%.
Foreign Institutional Investors (FIIs)- key players behind the on-going rally, bought shares nearly worth Rs 5,770 crore during the current week.
Sustained short-coverings by operators following expiry of derivative contracts too aided the rally.
Concerns of a disorderly debt default from Greece eased after the government's austerity program was passed in the parliament.
The BSE benchmark sensex jumped 522.12 points or 2.86% to end at 18,762.80.
The NSE 50-share Nifty also shot up by 155.95 points or 2.85% to 5,627.20.
The BSE Mid-Cap index jumped 229.97 points or 3.45% to 6,901.67. The BSE Small-Cap index surged 302.03 points or 3.81% to 8,224.41.
According to CNI Research CMD Kishor P Ostwal, heavy short-coverings as well as finance minister's statement that the economy will grow by around 8.5% in the current fiscal, helped the market to continue its north-bound journey.
Metal stocks rose as metal prices recovered on the London Metal Exchange after an earlier steep fall.
Auto stocks rose as the hike in diesel price of Rs 3 per litre announced by the government after trading hours on last Friday was lower than market expectations of a hike of Rs 4 per litre.
FMCG stocks rose on expectations that a strong monsoon will boost demand from rural areas and also reduce input prices.
Major gainers from the Sensex pack were Hindalco (7.81%), State Bank Of India (6.09%), Sterlite (6.08%), BHEL (5.26%), HDFC (5.22%), HDFC Bank (4.85%), TCS (4.41%), Tata Steel (4.04%), Larsen (3.95%), HUL (3.90%), ITC (3.41%), Icici Bank (2.76%), Bajaj Auto (2.74%), Jindal steel (2.53%) and Jaiprakash (2.52%).
The total turnover at BSE and NSE rose to Rs 13,920.41 crore and Rs 60,295.15 crore respectively from the last weekend's level of Rs 12,842.24 cr and 51,846.36 crore.