A fresh set of measures by the Reserve Bank of India helped bourses stay in the green for the second consecutive week as the bellwether Sensex added 176 points to its kitty amid growing concerns over a looming global recession.
In the highly volatile week to November 8, the Bombay Stock Exchange 30-share index fluctuated widely in a range of 10,945.41 and 9,631.59 before ending the week at 9,964.29, a net gain of 176.23 points or 1.80 per cent from its last weekend's close.
The Sensex had gained a whopping 12.49 per cent in the opening week of the new Vikram Samvat 2065, ending November 1.
Similarly, the broader 50-share Nifty of the National Stock Exchange settled the week 87.40 points, or 3.03 per cent, higher at 2,973.00 from its previous weekend's close.
News of rate cuts by several central banks around the world dominated the global markets even as investors' focus shifted to economic slowdown after the US presidential elections at the mid-week.
Initially, local markets sustained higher levels on the back of a fresh set of monetary measures coupled with government's assurance of more such steps to protect growth.
On November 1, the RBI slashed the Cash Reserve Ratio by one per cent and the short-term lending rate (repo) by 0.5 per cent, and also reduced the Statutory Liquidity Ratio (SLR) by one per cent.
This followed by majority of public sector banks cutting their Prime Lending Rates by 75 basis points during the week.
On the global front, the Bank of England and the European central bank cut their key rates by 1.5 per cent and 0.5 per cent respectively on November 6. Several other central banks also announced rate cuts during the week.
The market sentiment was also aided by a rise in India's infrastructure sector output providing encouraging picture for the economy.
Infrastructure stocks such as DLF gained 27.5 per cent, Reliance Infra 22.2 per cent, JVK Power and Infra 65.36 per cent, IVRCL Infra 64.17 per cent, GMR Infra 33.93 per cent and Lanco Infra 48.48 per cent.
From sectorial indices, the BSE-Realty index flared up by 364.58 points or 18.43 per cent, the BSE-Power by 194.20 points or 12.26 per cent, the Bankex by 520.91 points or 10.39 per cent and the BSE-CG by 617.80 points or 8.80 per cent.
However, IT and Metal stocks were under heavy pressure, as a result the BSE IT Index was down 191.40 points or 6.69 per cent and BSE Metal Index 215.27 points or 4.01 per cent.
The broad-based BSE-100 Index rose by 148.18 points or 2.99 per cent to end the week at 5,102.16 from its last weekend's close.
The BSE 200 Index and the Dollex-200 were quoted further higher at 1,184.61 and 413.55 at the weekend compared to their last weekend's close of 1,145.88 and 386.37 respectively.
On the NSE, the S&P CNX Defty shot up by another 135.65 points or 6.70 per cent to 2,159.65 from preceding weekend's close of 2,024.00 and the CNX Nifty Junior also improved further by 314.05 points or 7.32 per cent to finish the week at 4,605.35 from previous weekend's close of 4,291.30.
