Weekly review: Sensex surges 3%

IT, Capital Goods lead the upmove; BSE Mid-cap, Small-cap indices under-perform.

The markets moved from strength-to-strength this week, thanks mainly to significant buying in IT and Capital Goods heavyweights. The FMCG stocks also did their wee bit, as all three indices outperformed the BSE benchmark index - the Sensex. While the Sensex surged 3% to 17,570. The IT, Capital Goods and FMCG indices gained in the range of 3.2-4.6% each.

Elsewhere world markets to recovered on renewed optimism among the investors. Going ahead, the US Fed rate meet next Tuesday-Wednesday and RBI meet around July end would be some of the events to watch out for. The US Fed has also hinted of keep rates unchanged, while RBI too gave hints of no immediatea rate hike as feared by some set of investors on the backdrop of rising inflation and strong IIP numbers.

The Sensex this week touched a high of 17,721, before settling with a gain of 506 points at 17,571. The index is just 500-points shy away from its calendar year high of 18,048 touched in April.

Among the Sensex stocks - DLF surged nearly 8% to Rs 282. Larsen & Toubro, Reliance Communications and Sterlite rallied around 7% each to Rs 1,798, Rs 185 and Rs 679, respectively.

Infosys gained 5.5% at Rs 2,782. Jindal Steel, ITC and Jaiprakash Associates moved up nearly 5% each to Rs 670, Rs 294 and Rs 129, respectively.

Tata Motors, HDFC and Reliance Infrastructure advanced around 4.5% each to Rs 799, Rs 2,923 and Rs 1,162, respectively.

Hindalco, TCS, Tata Power, ICICI Bank, HDFC Bank and Mahindra & Mahindra were the other prominent gainers.

Wipro was traded ex-bonus during the week, and settled ata Rs 410.

Bharti Airtel was the only prominent loser down 3.5% at Rs 265.

The BSE Mid-cap and Small-cap indexes under-performed the Sensex. The BSE Small-cap index rallied 2.4% to 8,846, and the Mid-cap index moved up 1.3% to 6,976.

Among the Small-caps space - TTK Prestige zoomed over 41% to Rs 897. Resurgee Mines, Reliance Industrial Infra, Aegis Logistics, Karuturi Global, Cranes Software, Bajaj Hind Sugar and IFB Industries were up 23-34$ each.

On the other hand, HCL Infotel slumped over 12% to Rs 8.92. Shree Ram Mills, Atco Corporation, Henkel India, Binani Cement, McNally Bharat and Vindhya Tele declined 8-11% each.

Where as Geekay Finance led the gainers list on the BSE, up 27% at Rs 20 followed by BOC India up 25% at Rs 288. MTNL, Jai Corp, FK Oncology, United Breweries, Emami, LMW, Indraprastha Gas, Aban Offshore and BGR Energy rallied 11-20% each.

Kwality Dairy tanked over 23% to Rs 118. Bajaj Finserve, Religare Enterprises, Sadbhav Enggineering, MVL, Educomp Solutions, TVS Motor and Chennai Petro were down 6-13% each.