Sensex ends up for 8th week in a row
Buying support from both Indian and foreign funds help Sensex close higher for the eighth straight week.india Updated: Sep 18, 2006 11:41 IST
Indian equities closed higher for the eighth straight week resulting in a key market index breaching the 12,000-point mark once again after over four months, propped by buying support from both Indian and foreign funds.
The overall movement in the markets, however, was choppy since some key indices were nearing all-time highs and investors were nervous to take fresh positions on a long-term basis, analysts said.
As the trading week drew to a close Friday, the sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was positively placed at 12,009.59 points—up 90.94 points, or 0.76 percent, over the previous week's close at 11,918.65 points.
Looking ahead, analysts expect the market sentiments to continue to remain edgy. "Investors will wait for the third quarter results—expected in the first week of October—before fresh positions," an analyst with a brokerage here said.
"Most of the heavyweight stocks are overvalued—given the first quarter results of companies and their future prospects. Therefore, one can expect much of the action to shift to mid-cap stocks," the analyst added.
Trading commenced on a negative note during the week under review as the Sensex recorded its steepest fall since July 17 and closed at 11,550.69 points, Monday—down 367.96 points, or 3.09 percent, over the last Friday's close of 11,918.65 points.
But after that the markets began to look up, albeit amid volatility, and the key index managed to scale the psychologically important 12,000-point level.
The index was up 110.10 points, or 0.95 percent, on Tuesday, followed by a further gain of 233.00 points or 2.00 percent on Wednesday.
Thursday saw the Sensex top the 12,000 mark, but slip back at close to register a gain of 79.23 points, or 0.67 percent, at 11,973 points against the previous day's close at 11,893.79 points.
The markets continued to be charged on Friday and the key index ended at 12,009.59 points to register a gain of 36.57 percent, or 0.31 percent, over the previous day's close.
During the week, even though foreign institutional investors sold equities worth $10.5 million on Monday and $25.9 million on Wednesday, they emerged as net buyers of stocks estimated at $201.2 billion during the week.
Foreign institutional investors have bought equities worth $532.30 million in September, $4.38 billion this year and their net cumulative purchases since they entered the Indian markets stands at $45.48 billion.
Among the Sensex stocks, the main gainer during the week was Larsen and Toubro, up four percent at Rs2,640. The other stocks that rose included Grasim (3.94 percent at Rs2,486) and Satyam (2.30 percent at Rs829).
The biggest loser was Reliance Communications, down two percent at Rs318. The other losers include Infosys (1.12 percent at Rs1,809), Bajaj Auto (1.16 percent at Rs2,792) and Hindustan Aluminium (1.25 percent at Rs169).