Sensex extends weekly gains for 8th week

The BSE benchmark Sensex continued its northward journey for the eighth straight week ending higher by 48 points at 17,793 on weekly basis after sustained buying by foreign funds.

Buying was seen mainly in capital goods, consumer durables, metal and realty stocks, while IT companies suffered sharp losses following higher rupee values which touched an 18-month high against the dollar.

Foreign funds made heavy purchases in the last month. Foreign institutional investors (FIIs) bought stocks worth more than Rs 19,000 crore in March 2010.

The 30-share Sensex resumed the week higher at 17,639 points and immediately touched to a two-year high at 17,793. It declined afterwards to 17,489 before ending the week at 17,693, a net rise of 48points, or 0.27 per cent. The key index had ended at 17,824 on March 28, 2008, after hitting an intra-day high at 17,922 on the same day.

The rupee rallied to a fresh 18-month high of 44.89 against the greenback, affecting the profit margin of IT firms as the sector derives a lion's share of revenue from exports, especially to the US.

The BSE-IT index declined sharply by 159 points, or 3 per cent.

Food inflation rose marginally to 16.35 per cent for the week ended March 20, mainly on account of high prices of pulses and milk.

The National Stock Exchange (NSE) 50-share Nifty moved up marginally by 8.50 points or 0.16 per cent, to 5,290.50 from the last weekend's level.

Among other indices, the BSE-Capital goods rose by 3,638.36 points or 34.21 per cent, the BSE-Realty 104.36 points or 3.26 per cent, the BSE-Consumer durable 112.75 points or 2.70 per cent and the BSE-Metal by 320.74 points or 1.79 per cent.

Small-cap and Mid-cap indices also shot up by 276.45 or 3.28 per cent and 103.45 points or 1.53 per cent, respectively on the back of renewed buying.

Major gainers in Sensex pack were HDFC, up 6.57 per cent, followed by DLF 5.38 per cent, Sterlite Ind 4.39 per cent, Tata Motor by 3.50 per cent, Hindalco 3.14 per cent, NTPC 2.77 per cent, BHEL 2.55 per cent, Jaiprakash Associates 2.09 per cent, Sun Pharma 2.01 per cent and Reliance Com 1.91 per cent and State Bank Of India rose 1.49 per cent.

However, Infosys Tech dropped 3.82 per cent followed by Hero Honda 2.91 per cent, HUL 2.90 per cent, Bharti Airtel 2.58 per cent, TCS 2.15 per cent and Grasim lost 1.63 per cent.

The total turnover at the BSE and NSE dipped to Rs 17,825.38 crore and 52,175.22 crore, respectively from the last weekend's Rs 17,938.57 crore and Rs 55,953.82 crore.