Encouraged by a robust earning season and a dramatic rise in FII inflows, the stock market bounced back with a vengeance during the week ended July 28.The Sensex notched up a whopping rise of 594.38 points or 5.89% over last weekend's close of 10,085.91 to close the week at 10,680.23. The Sensex had dropped 592.31 points last week.Dispelling the bearishness, sentiment turned bullish as FIIs pumped in money to cover short positions in the concluding four days of the July contract of derivatives.The market was also backed by a host of positive factors including news that the largest bank, State Bank of India (SBI), has approached the finance ministry for floating a rights issue to meet core capital requirements.The upbeat mood was fanned by Reserve Bank of India's (RBI) anti-inflationary credit policy, and releases of impressive quarterly financial results by major corporates.The banking sector led the rally with the BSE Bankex gaining 533 points or 12.73%.
