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Sensex, Nifty up 2 pc over the week

After stabilising at the 14k psychological level, a strong rally emerges as FIIs cover short positions, attracting retailers to follow suit.

business Updated: Jun 24, 2007 23:03 IST

The key indices benchmark Sensex and the Nifty gained two per cent over the week under review amid indications of high volatility next week due to impending expiry of June series.

After consolidation at 14K psychological level, a strong rally emerged as Foreign Institutional Investors (FIIs) covered short positions, attracting retailers to follow the suit. FIIs reported net purchases of Rs 4,420 crore in the derivatives between June 14 and 21.

The Bombay Stock Exchange (BSE) barometer breached 14,500 level during trading for the first time in two weeks and ended at 14,467.36, a net rise of 304.65 points or 2.15 per cent from last weekend's close of 14,162.71.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) spurted by 80.60 points or 1.93 per cent to close the week at 4,252.05 from previous weekend's close of 4,171.45.

Though a circular issued by the Central Board of Direct Taxes (CBDT) with regard to tax on profits from sale of shares caused a flutter among investors, a strong response to ICICI Bank's public offer and sustained upward global trend boosted the market sentiment.

Market players, however, expect high volatility next week as operators and FIIs will either roll over positions to next series or square off positions in derivatives, as the Futures and Options (F&O) contract is ending on June 28.

The rally was spread across the board as domestic mutual funds too made heavy purchases.

First Published: Jun 23, 2007 13:27 IST