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Sensex, Nifty score biggest point-wise weekly gains

DII plays an important role in the unprecedented weekly rally, injecting Rs 1,390 crore.

business Updated: Sep 01, 2007 14:54 IST

The stock markets scored the highest point-wise weekly gains during the week on the back of hectic short-covering prompted by encouraging global developments, which indicated a possible rate cut by the US Federal Reserve.

The markets had a sentimental impact from a strong US economic data as well as Fed chief Ben Bernanke's statement on steps to mitigate adverse effects on the economy in the aftermath of recent financial market turmoil.

Foreign institutional investors (FIIs), which had been heavy net sellers during the entire month, began covering short positions and reported net purchases of Rs 1,258 crore in the week.

Domestic institutional investors (DIIs) played important role in the unprecedented weekly rally, injecting Rs 1,390 crore.

Indications of domestic political stability also helped the market sentiment.

In one of the strongest rally, the Bombay Stock Exchange (BSE) 30-share Sensitive Index gained 893.73 points, the biggest weekly rise in absolute term or 6.20 per cent to end the week at 15,318.60 over last weekend's close of 14,424.87.

The bullish trend is expected to gather momentum on the back of a 9.3 per cent GDP growth in April-June quarter and inflation below four per cent.

Inflation declined to 3.94 per cent in the week ended August 15, which is far below the RBI's projection for this fiscal.

First Published: Sep 01, 2007 14:38 IST