Sensex snaps two-week losing streak, gains 248 pts
The BSE benchmark Sensex snapped two-week losing streak and recovered 248 points on the back of bargain hunting amid a sharp fall in food inflation and the upgradation of Indian Government's long-term bonds by global credit ratings agency Moody's.business Updated: Dec 24, 2011 14:56 IST
The BSE benchmark Sensex snapped two-week losing streak and recovered 248 points on the back of bargain hunting amid a sharp fall in food inflation and the upgradation of Indian Government's long-term bonds by global credit ratings agency Moody's.
Buying was seen mainly in refinery, FMCG, auto, consumer durables and banking sectors.
Food inflation fell sharply to a 4-year low of 1.81% for the week ended December 10, from 4.35% in the previous week. It raised hopes that overall inflation might dip as well and prompt the Reserve Bank to start cutting interest rates to revive sagging economic growth.
Rate-sensitive banking and auto stocks rose after data released on Thursday showed food inflation eased to four-year low, cementing expectations of a steady easing in overall price pressures.
Moody's Investors Service raised India's local currency debt rating by one level to investment grade from the highest junk grade, boosting the market sentiment.
The 30-share Sensex resumed lower at 15,440.10 and dropped further to a 28-month low to 15,135.86. It recovered to 15,911.23 before ending the week at 15,738.70, up 247.35 points or 1.60% from its last weekend's level. It had lost 1,355.48 points, or 8.05%, in the last two weeks.
The NSE 50-share Nifty also gained 62.40 points, or 1.34%, to finish the week at 4,714.00. The index had lost 398.55 points, or 7.89%, in the last two weeks.