Stock markets were propelled by robust industrial growth data, the government’s reform initiatives and strong global markets. The Sensex ended the week higher by 690.55 points, or 4.27 per cent, at 16,848.83, while the Nifty closed at 4,998.95, up 202.80 points, or 4.23 per cent.
The shares rose 0.9 per cent, or 152 points, today, led by banks and outsourcing companies and propelled the Sensex to its best weekly gain in 11 weeks, supported by rising foreign portfolio investment. Foreign funds have invested $14.8 billion into the Indian stock markets this year, lifting the Sensex nearly 75 per cent. In 2008, they had pulled out more than $13 billion. Foreign institutional investors have made net purchases worth Rs 2,727 crore so far this month.
Tata Motors was among the top private sector gainers (up 8.77 per cent), followed by Reliance (8.17 per cent), TCS (7.98 per cent), ICICI Bank (7.15 per cent) and Infosys (6.36 per cent). Among the disinvestment candidates, NMDC closed the week higher by 29 per cent at Rs 435, SAIL was up nearly 10 per cent at Rs 182 , while NTPC rose over 2 per cent to Rs 215.
Friday was choppy, albeit within a narrow range. While the Sensex made good the previous day’s losses, the Nifty hovered around the psychological 5,000 mark before closing just below it.
A robust manufacturing data seems to have rubbed on to steel and auto sectors. Hero Honda (3.99 per cent) and Maruti (3.90 per cent) were the leading gainers on the BSE. Tata Steel was up 1.84 per cent to Rs 521.25 and SAIL added 3.29 per cent to close at Rs 18.
ONGC rose 3.10 per cent to Rs 1,183.95 after the government hiked the administered gas prices by 31 per cent.
Among the Sensex losers, Jaiprakash Associates fell 1.99 per cent to Rs 231.95 and M&M shed 0.69 per cent at Rs 1029.20. Mahindra Satyam lost 6.60 per cent to Rs 109.70 on reports that L&T has sold one-third of its stake in the IT major. L&T closed flat at Rs 1,643.55.
The market breadth was evenly poised. Out of 2,827 stocks traded on the BSE, there were 1,372 advances and 1,355 declines. Dinesh Thakkar, CEO, Angel Broking, said, “The 2011-2012 earnings should be good and this will be factored in in the following quarters. However, in the immediate future, markets are likely to be range-bound in the absence of negative cues. The Nifty is likely to bottom out at 4,800-5,000 and thereafter resume the bull run.”
