Indian benchmark indices ended the week on a strong note as investors took fresh positions on hopes that a solution to the euro zone debt crisis is nearing. The benchmark Sensex and Nifty rose to their highest level in nearly four weeks with the Sensex closing above the psychological 17,000-mark.
The 30-share Sensex of the Bombay Stock Exchange closed the day at 17,082.69, up 198.77 points or 1.18 per cent. The Sensex, which had opened 0.3 per cent down, added most gains in afternoon trade after see-sawing earlier. It was the index’s highest close since September 20. During the week, the Sensex added 5.2 per cent, but is still down 16.7 per cent this year. The broader S&P CNX Nifty of NSE gained 54.45 points or 1.07 per cent to settle the day at 5,132.30.
Market experts attributed the gains to the absence of any negative newsflow and the recent correction that have made valuations quite attractive. Investors, however, are cautious on account of a weak outlook.
“This week’s market upside movement was primarily because of the fact that earlier it was an oversold market,” said Ambareesh Baliga, COO, Way2Wealth. “At the same time there was lack of adverse news, which could have impacted the markets, though there was hardly any positive news flow. In such times, better guidance from Infosys too helped build better sentiments during the week.” Private sector major Reliance Industries and top software services exporter Tata Consultancy Services rose 2.4 per cent and 3.8 per cent, respectively, ahead of their quarterly earnings, and contributed the most to the benchmark index gains. RIL gained Rs 20 to end at Rs 866.90, its highest close in about two-and-a-half months. A Reuters poll expects RIL to report a 16 per cent rise on Saturday in the September-quarter profit on strong refining margins.
Other notable gainers among the benchmark index included Bajaj Auto, Bharti Airtel, Jindal Steel, Wipro, Tata Steel and Hindustan Unilever. In the broader market, there were 724 gainers against 704 losers on the NSE. On BSE, 1,431 stocks gained ground, against 1,331 losers. According to provisional figures, foreign institutional investors (FIIs) were net sellers at Rs 94.04 crore. Domestic institutions sold shares worth Rs 238 crore. European shares too rose on Friday, bolstered by hopes of a solution to the euro zone crisis. G20 finance chiefs and central banks’ heads from the world’s biggest economies meet in Paris in search for a solution to a deepening crisis that has fanned fears of a global recession. World stocks as measured by MSCI gained 0.31 per cent, while emerging equities were up 0.16 per cent.