Sensex settles above 10-K mark
The key benchmark Sensex settled the week above the psychologically important 10-K level, after the Govt announced several policy measures and as inflation fell sharply to a nine-month low.business Updated: Dec 20, 2008 20:44 IST
The key benchmark Sensex settled the week above the psychologically important 10-K level, after the government announced several policy measures and as inflation fell sharply to a nine-month low.
The government announced a slew of monetary and fiscal policy measures in the past but the real twist was seen this week after the inflation tumbled to 6.84 per cent for the week ended December 6.
Major beneficiary, however, was the real estate sector having bounced by 1,122.21 points, or 80 per cent, from its lowest level of 1,403.13 touched on December 2.
Considering the Realty Index highest level of 13,848.09 hit on January 8 this year, the recovery works out at over eight per cent against an amazing fall of 90 per cent in nearly 11 months.
The Bombay Stock Exchange 30-share barometer ended the week at 10,099.91, for the first time since November 10, 2008, registering a net rise of 409.84 points or 4.23 per cent over its preceding weekend's close.
The broader 50-share Nifty of the National Stock Exchange also gained 156.15 points, or 5.35 per cent, to settle the week at 3,077.50 from its last weekend's close.
Foreign Institutional Investors as well as domestic funds were net buyers during the week if the Friday's provisional numbers are taken into account.
The rally was largely sparked by increased possibility of a fresh rate-cut by the Reserve Bank of India as also strong indications of announcement of the second stimulus package by the government to tide over the slowdown.