Sensex rises in tandem with world markets
Indian equities advanced this week as concern about the euro zone debt crisis eased a bit after China assured the world it was not selling European bonds and investors and traders indulged in some bottom fishing after last week's sell-off.business Updated: May 29, 2010 13:57 IST
Indian equities advanced this week as concern about the euro zone debt crisis eased a bit after China assured the world it was not selling European bonds and investors and traders indulged in some bottom fishing after last week's sell-off.
Market sentiment was also boosted by a rapprochement between the Ambani brothers. Mukesh and Anil Ambani in identical statements May 23 said they were "hopeful and confident" of creating an "environment of harmony, co-operation and collaboration" after ending a 2006 non-compete accord.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) rose 2.54 per cent or 417.45 points to end at 16,863.06 points on Friday.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) too ended the week on a high at 5,304.1 points, up 135.4 points or 2.74 per cent.
Broader indices also closed in the green with the BSE midcap index gaining 1.01 per cent and the BSE smallcap index moving up 0.94 per cent.
The top gainers on the 30-scrip Sensex were Reliance Power (12.8 per cent), Reliance Infrastructure (6.9 per cent), Tata Motors (5.6 per cent), TCS (4.5 per cent) and ITC (4.4 per cent).
Among major losers were Grasim (24.7 per cent), ACC (4.3 per cent), Tata Steel (2.4 per cent), Bharti Airtel (2.1 per cent) and SBI (1.4 per cent).
The sectors that gained the the most during the week were realty (4.1 per cent), oil and gas (3.4 per cent), IT (3.2 per cent), and healthcare (2.3 per cent).
According to data with the Securities and Exchange Board of India (SEBI), foreign institutional investors sold scrips worth $805.59 million.
In Asia, China's assurance that it was retaining its investment in Europe soothed nerves, boosting market confidence and commodity prices.
The Chinese Shanghai composite index ended Friday at 2,655.77 points, up 2.8 per cent from its previous week's close, while the Hang Seng of the Hong Kong Stock Exchange closed at 19,766.71 points, 1.13 per cent higher.
The Japanese Nikkei ended the week flat at 9,762.98 points, down 0.22 per cent.
European stocks also gained during the week.
London's FTSE was up 2.48 per cent to close the week at 5,188.43 points. Its French peer CAC ended 2.46 per cent higher at 3,515.06 points while the German DAX closed at 5,946.18 points, up 2.01 per cent.
US markets too put an end to the losing spree.
For the week, benchmark indices such as the Nasdaq gained 1.26 per cent to close Friday at 2,257.04 points, and the Standard and Poor's 500 was up 0.16 per cent at 1,089.41 points.
The Dow Jones industrial average, however, closed 0.56 per cent lower at 10,136.63 points.