Weekly review: Sensex fails to close past 20K
The market shows strong signs of scaling new heights in the on-going November series amid forecast of a significant correction.business Updated: Nov 03, 2007 14:45 IST
Stocks: The benchmark Sensex crossed the psychologically important 20K level four times on day-to-day basis during trading but failed to achieve the milestone in the week under review.
The market, however, showed strong signs of scaling new heights in the on-going November series amid forecast of a significant correction in the light of high and rising risk of a recession in the US in 2008, market players said.
In the week till November 3, the Bombay Stock Exchange (BSE) barometer that registered the third biggest-ever gain of 734.50 points on October 29, reacted negatively on two occasions on Tuesday and Thursday on weak global cues.
The market, however, discounted any global co-relation on Friday, the day it bounced by 720 points from the day's low to score impressive gains despite a world-wide meltdown.
Finally, the Sensex ended the week at 19,976.23, a net rise of 733.06 points or 3.81 per cent over last weekend's close of 19,243.17.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) crossed the 6,000 level for the first time ever and ended the week at a new peak of 5,932.40 from last weekend's close of 5,702.30, a gain of 230.10 points or 4.04 per cent.
Analysts expected the market to consolidate by way of intra-day corrections while a leading US-based fund Morgan Stanley warned that Asia and India will be hit hard due to a likely recession in the US in 2008.
Inflation remained low at 3.02 per cent in the week ending October 20 and the economic fundamentals were strong.
Though the US Federal Reserve's rate cut by 25 basis point on October 31 was seen as a positive development for the market, Finance Minister P Chidambaram said it was expected and already factored in by RBI in its quarterly review of Monetary policy on October 30.
The Sensex has risen by 2,624 points or 15 per cent to an all-time trading high of 20,238.16 on Tuesday after SEBI said the proprietary sub-accounts of FIIs will be allowed for a full licence, putting registration of FIIs on a fast track.
However, auto share suffered a sharp setback pulling the the BSE-auto index down by 193.87 points or 3.45 per cent to 5,423.10.
During the week, trading volume on the BSE and NSE was high at Rs 49,613 crore and Rs 1,17,645 crore compared to last weeks turnover of Rs 40,422 crore and Rs 96,626 crore respectively.
The broad-based BSE-100 index spurted further by 444.92 points or 4.45 per cent to end the week at 10,447.68 from last weekend's close of 10,002.76.
The BSE-200 index and the Dollex-200 were also quoted sharply higher at 2,447.56 and 1,036.56 at the weekend from previous weekend's close of 2,354.45 and 993.76 respectively.
The BSE-500 index improved further by 294.09 points to end the week at 7,805.41 from 7,511.32 and the Dollex-30 also ended the week higher at 4,171.87 from 4,005.23 last weekend.
On the NSE, the S&P CNX Defty strengthened further by 219.35 points to 5,228.15 from last weekend's close of 5,008.80 and the S&P CNX Nifty Junior also rose by 329.05 points to 10,597.70 from 10,268.65.
First Published: Nov 03, 2007 12:51 IST