Weekly review: Sensex, Nifty at new all-time highs
The BSE-100 soars by 194.31 points to end the week at 7,939.89 from last weekend's close of 7,745.58.Updated: Jul 14, 2007 15:33 IST
The key indices Benchmark Sensex and Nifty scaled new heights on day-to-day basis on a spate of positive developments in the week under review but the rising open interest positions caused worries among investors.
The Bombay Stock Exchange (BSE) barometer hit an all-time trading high of 15,330.73 and also ended the week at a new closing peak of 15,272.72, netting a whopping gain of 308.60 points or 2.06 per cent.
Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) touched a life-time intra-trade record high of 4,513.90 before ending the week at 4,504.55, a net rise of 119.70 points or 2.73 per cent.
The sustained rally was largely attributed to strong expectations of encouraging first quarter earnings even after IT bellwether Infosys Technologies slashed revenue guidance for the current financial year due to the rupee's appreciation against dollar while announcing Q1 results on July 10.
The market was bolstered by buoyant global markets during the week as well as hopes of consolidation in the global metal industry after global miner Rio Tinto made a USD 38 billion offer to buy Canada's Alcan Inc triggering a strong buying momentum in metal stock at home.
The market has witnessed consistent buying so far in the month and scaled new peaks almost on day-to-day basis. The prime market-mover Foreign Institutional Investors (FIIs) played a key role in the bull run, pumping in more than Rs 8,500 crore in the first nine trading days of July.
The inflows amounted to Rs 2,655 crore in the initial four day of the week.
The market outlook remained optimistic and a long bull phase is not ruled out but a correction is required for the counters in overbought zone indicated by rising open interest positions, according to market players.
IT counters, however, remained under pressure despite the government's relief package to exporters hit by the rupee's appreciation against dollar.
Among the sectorial indices, the BSE metal index took an unprecedented leap of 1,225.88 points or 11.38 per cent to touch a new record high o 12,000.90 at the weekend.
The earning season and global markets, however, will spell the course of market for the short-term, analysts feel.
During the week, the trading volume on the BSE and the NSE remained high at Rs 28,316 crore and Rs 59,430 crore respectively.
The broad-based BSE-100 Index soared by another 194.31 points or 2.51 per cent to end the week at 7,939.89 from previous weekend's close of 7,745.58.
The BSE-200 Index and the Dollex-200 were quoted higher at 1,883.28 and 775.53 at the weekend compared to preceding weekend's close of 1,837.10 and 756.66 respectively.
The BSE-500 Index spurted by 150.35 points or 2.56 per cent to finish the week at 6,032.27 from last weekend's close of 5,881.92 and the Dollex-30 ended up at 3,101.38 from 3,039.32 at the last weekend.
On the NSE, the S&P CNX Defty flared up further by 100.00 points or 2.66 per cent to close the week at 3,858.85 from last weekend's close of 3,758.85 and the S&P CNX Nifty Junior jumped by 357.10 points to end the week at 9,086.60 from last weekend's close of 8,729.50.