Sensex surges 785 points on budget proposals
The markets advanced over four percent this week as proposals in the federal budget to allow foreign investment in mutual funds and hike overseas investment in corporate bonds boosted investor sentiments.
The 30-share sensitive index of the Bombay Stock Exchange (BSE), Sensex, ended the week at 18,622.70 points, up 785.54 points or 4.44% from the previous week's close of 17,700.91 points.
The index closed in the positive in three of the four trading sessions this week.
The benchmark Sensex surged 623 points on Tuesday, a day after Finance Minister Pranab Mukherjee presented the federal budget for 2011-12.
The market cheered on Mukherjee's proposal to continue with crucial taxation and fiscal reforms. Investors sentiment was particularly boosted by the steps to attract foreign investors, including overseas funds and mutual funds.
However, on the last trading day of the week, the 30-scrip Sensex closed almost flat. The Sensex declined 3.31 points to close at 18,486.45 points on Friday.
At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty also gained almost five percent this week. The Nifty traded in the positive throughout the week.
The 50-share closed 0.05% or 2.55 points higher at 5,538.75 points on Friday.
Major gainers on the Sensex on Friday were: Tata Power, up 2.27% at Rs 1,218.70; Hero Honda, up 2.15% at Rs 1,534.45; Bajaj Auto, up two percent at Rs 1,377.65 and HDFC, up 1.63% at Rs 681.55.
Major Sensex losers on the last trading day of the week were: L&T, down 3.08 at Rs 1,610.80; Jaiprakash Associates, down 2.04% at Rs 84; Maruti Suzuki, down 1.98% at Rs 1,302; and BHEL, down 1.94% at Rs 2,085.
Other Asian markets also ended the week on a positive note. The Japanese Nikkei closed 1.02% higher at 10,693.70 points, making up for some of the losses earlier this week.
Hong Kong's Hang Seng advanced 1.24% at 23,408.90 points and China's Shanghai Composite index closed 1.35% higher at 2,942.31 points.