 "Weekly: Markets snap 5-week losing streak")
Benchmark share indices snapped their five-week losing streak and ended at one-month closing highs, amid strong global cues, led by gains in rate sensitive shares.
In the week to March 8, the 30-share Sensex of the Bombay Stock Exchange ended up 765 points or 4% at 19,683 and the 50-share Nifty of the National Stock Exchange ended up 226 points or 4% at 5,946.
Markets firmed up from Tuesday onwards tracking gains in global peers amid speculation that the US Federal Reserve will continue with monetary stimulus in the wake of sluggish growth in world's biggest economy. The encouraging economic data from the world's largest economies, US and China, boosted investor sentiment.
The Nikkei advanced 2.6 percent to 12,283.62, its highest closing level since September 2008. For the week, the index gained 5.8 percent, the biggest weekly gain since December 2011.
The Dow Jones ended up 2% for the week ended March 8, closing at a fresh all-time high, at 14,397 on Friday.
Meanwhile, the share of merchandise exports in the country's GDP has increased from 13.9% in 2009-10 to 17.7% in 2011-12, Parliament was informed on Wednesday.
Further, Prime Minister Manmohan Singh on Friday, exuded confidence that the economic slowdown will not continue and the country will bounce back to the growth rate of 7 to 8% in next two to three years.
The rally in the domestic market was led by rate sensitive shares on hopes that the Reserve Bank of India may further cut key policy rate at its next meeting to be held on March 18. Of the 30 stocks in the Sensex, 27 ended with gains while 3 stocks ended lower with Hindustan Unilever being the top loser down 3.2% followed by Bajaj Auto and NTPC.
The sectoral indices on the BSE was led by Realty up 7.4% followed by Bankex, Capital Goodss and Oil & Gas among others.
Realty shares were up on value buying at lower levels and hopes that new home sales would revive after some banks announced reduction in interest rates on home loans. Realty major DLF was up 7% while Anant Raj, HDIL and Sobha Developers surged 11-17% each.
Banks, which are a proxy to the economy, also firmed up during the week under review on hopes that a further cut in key policy rates by the central bank would help revive credit growth. ICICI Bank surged 7.8%, HDFC Bank rose 5.7% and SBI gained 5.5%.
Capital goods shares were also among the top gainers on value buying at lower levels after they witnessed selling pressure in the previous weeks. L&T jumped 6.9% after global investment bank Goldman Sachs upgrades the stock to "buy" from "neutral". Goldman cited cheaper valuations after L&T's recent under-performance against the broader index and the prospect of stable revenue growth over the medium term.
Among others, BHEL gained 3.2%. Among other shares in the segment, Siemens surged 7.6%, Alstom Ind rose 11.2% and Punj Lloyd ended up 10.2%.
Oil and Gas stocks ended up tracking declining global crude prices while exploaration majors firmed up after the government proposed to increase spends on oil subsidies. Oil marketing companies which have been gradually raising retail transport fuel prices were also among the top gainers.
Reliance Industries was the top gainer in the sectoral index up 5.1%. The Bombay High Court on Thursday disposed of a petition filed by capital markets regulator Securities and Exchange Board of India (Sebi) challenging an order of the Chief Information Commissioner directing disclosure of all details related to an alleged insider trading case involving Reliance Petroleum Ltd in 2007.
A division bench of Justices S J Vazifdar and Mridula Bhatkar disposed of Sebi's petition after it was informed that the Delhi High Court had on January 30 this year set aside the CIC order on a petition filed by Reliance Industries Ltd (RIL) against the disclosure.
Among public sector oil explorers, ONGC gained 3.5% and Oil Indiz ended up 4%. Among the public sector oil marketing companies HPCL, IOC and BPCL ended up 2.7-4.9% each.
Metal shares were in the limelight during the week tracking gains in global metal prices. Sterlite Industries was the top Sensex gainer up 8.4%, Tata Steel was up 5%, Jindal Steel was up 2.3% and Hindalco rose 2.2%.
Investors will await industrial output data on Tuesday, March 12 and February inflation data on Thursday, March 14. A declining industrial output may rekindle hopes of a further rate cut by the RBI at its meet on March 18.
In the week to March 8, the 30-share Sensex of the Bombay Stock Exchange ended up 765 points or 4% at 19,683 and the 50-share Nifty of the National Stock Exchange ended up 226 points or 4% at 5,946.
Markets firmed up from Tuesday onwards tracking gains in global peers amid speculation that the US Federal Reserve will continue with monetary stimulus in the wake of sluggish growth in world's biggest economy. The encouraging economic data from the world's largest economies, US and China, boosted investor sentiment.
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Japan's Nikkei share average ended at a new 53-month high on Friday, as exporters and real estate shares rose helped by bullish U.S. data, a weakening yen, and ongoing optimism aggressive easing will soon be adopted by the Bank of Japan's new leadership.
The Nikkei advanced 2.6 percent to 12,283.62, its highest closing level since September 2008. For the week, the index gained 5.8 percent, the biggest weekly gain since December 2011.
The Dow Jones ended up 2% for the week ended March 8, closing at a fresh all-time high, at 14,397 on Friday.
Meanwhile, the share of merchandise exports in the country's GDP has increased from 13.9% in 2009-10 to 17.7% in 2011-12, Parliament was informed on Wednesday.
Further, Prime Minister Manmohan Singh on Friday, exuded confidence that the economic slowdown will not continue and the country will bounce back to the growth rate of 7 to 8% in next two to three years.
The rally in the domestic market was led by rate sensitive shares on hopes that the Reserve Bank of India may further cut key policy rate at its next meeting to be held on March 18. Of the 30 stocks in the Sensex, 27 ended with gains while 3 stocks ended lower with Hindustan Unilever being the top loser down 3.2% followed by Bajaj Auto and NTPC.
The sectoral indices on the BSE was led by Realty up 7.4% followed by Bankex, Capital Goodss and Oil & Gas among others.
Realty shares were up on value buying at lower levels and hopes that new home sales would revive after some banks announced reduction in interest rates on home loans. Realty major DLF was up 7% while Anant Raj, HDIL and Sobha Developers surged 11-17% each.
Banks, which are a proxy to the economy, also firmed up during the week under review on hopes that a further cut in key policy rates by the central bank would help revive credit growth. ICICI Bank surged 7.8%, HDFC Bank rose 5.7% and SBI gained 5.5%.
Capital goods shares were also among the top gainers on value buying at lower levels after they witnessed selling pressure in the previous weeks. L&T jumped 6.9% after global investment bank Goldman Sachs upgrades the stock to "buy" from "neutral". Goldman cited cheaper valuations after L&T's recent under-performance against the broader index and the prospect of stable revenue growth over the medium term.
Among others, BHEL gained 3.2%. Among other shares in the segment, Siemens surged 7.6%, Alstom Ind rose 11.2% and Punj Lloyd ended up 10.2%.
Oil and Gas stocks ended up tracking declining global crude prices while exploaration majors firmed up after the government proposed to increase spends on oil subsidies. Oil marketing companies which have been gradually raising retail transport fuel prices were also among the top gainers.
Reliance Industries was the top gainer in the sectoral index up 5.1%. The Bombay High Court on Thursday disposed of a petition filed by capital markets regulator Securities and Exchange Board of India (Sebi) challenging an order of the Chief Information Commissioner directing disclosure of all details related to an alleged insider trading case involving Reliance Petroleum Ltd in 2007.
A division bench of Justices S J Vazifdar and Mridula Bhatkar disposed of Sebi's petition after it was informed that the Delhi High Court had on January 30 this year set aside the CIC order on a petition filed by Reliance Industries Ltd (RIL) against the disclosure.
Among public sector oil explorers, ONGC gained 3.5% and Oil Indiz ended up 4%. Among the public sector oil marketing companies HPCL, IOC and BPCL ended up 2.7-4.9% each.
Metal shares were in the limelight during the week tracking gains in global metal prices. Sterlite Industries was the top Sensex gainer up 8.4%, Tata Steel was up 5%, Jindal Steel was up 2.3% and Hindalco rose 2.2%.
Investors will await industrial output data on Tuesday, March 12 and February inflation data on Thursday, March 14. A declining industrial output may rekindle hopes of a further rate cut by the RBI at its meet on March 18.