Sensex surges by 289 pts, firm for the 3rd week in a row
The benchmark Index of BSE Sensex remained firm for the third week in a row, as it rallied by 288.92 points to 19,575.64 in the week under review on firm global cues.business Updated: May 04, 2013 18:19 IST
The benchmark Index of Bombay Stock Exchange (BSE) Sensex remained firm for the third week in a row, as it rallied by 288.92 points to 19,575.64 in the week under review on firm global cues.
The Nifty of National Stock Exchange (NSE) rose by 72.55 points to 5,944.
The equity market erased the gains of last three sessions, on Friday, after the RBI cut the key policy rates marginally by 0.25%.
The new repo rate would be 7.25% and the reverse repo rate 6.25%.
Analysts said the central bank's comments that there is limited room for monetary easing also weighed on sentiment, sparking profit booking across share categories.
A large section of the market was expecting the RBI would cut the repo rate by 50 basis points following the recent decline in global crude oil and gold prices that could lead to better government finances and lower inflation.
RBI, in its Annual Monetary policy, said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing.
The market gained in three out of four trading sessions in the week just gone by.
Among stock-specific activity, shares of FMCG major Hindustan Unilever (HUL) rallied in the week after the company's foreign parent Unilever PLC on Tuesday announced open offer to acquire additional stake in the Indian unit.
Index heavyweight and cigarette major ITC hit record high in intraday on Tuesday.
The BSE Mid-Cap and Small-cap index moved up by 1.61 and 0.14% respectively.
Key benchmark indices edged higher on Monday on gains in European stocks.
The BSE Sensex jumped by 100.78 points to 19,387.50.
On Tuesday, it further gained by 116.68 points to 19,504.18, its highest closing level since 14 March 2013. The stock market remained closed on Wednesday on account of Maharashtra Day.
On Thursday, the Sensex shot up by 231.59 points to settle at 19,735.77, its highest closing level since February 4 2013.
With this, the Sensex registered a massive gain of 447 points in three straight sessions.
On Friday, after announcing RBI policy it nosedived by 160 points to settle at 19,575.64, as RBI said there was little space for further monetary easing.
From 30-share Sensex pack, 16 stocks gained and rest of them declined in the week ended Friday.
Seeing the sectoral indices such as FMCG, Technology and IT rose between 2-7% however, autos and power fell between 0.5-1 pc during the week on BSE.
Hindustan Unilever rallied by 23%, after the parent Unilever announced that it planned to spend up to $5.4 billion (Rs 29,202 crore) in cash to increase its stake in its Indian subsidiary, to 75% from 52.48% now.
Reliance Communications (RCom) gained 18% for the week.
Index heavyweight Reliance Industries (RIL) rose by 1.01% to Rs 801.20.
Index heavyweight and cigarette major ITC gained by 3.7% to Rs 330.75.
IT stocks rose on positive economic data in the US, the biggest outsourcing market for the Indian IT firms. Infosys gained by 4.32%. Wipro surged by 7.71%.
Tata Consultancy Services (TCS) rose by 3.69%.
Bank stocks edged lower. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell by 3.19%, HDFC Bank dropped by 1.18%. ICICI Bank declined by 1.25%.
Auto stocks were mixed. Car maker Maruti Suzuki India and Tata Motors fell by 0.48% and 3.7% respectively.
Mahindra & Mahindra (M&M) jumped by 7.64% as it reported a 2% rise in total sales to 41,432 in April 2013 over April 2012.