Resisting several negative factors, the key indices of the benchmark Sensex and Nifty gained by about 8 per cent over the week as a slew of monetary and fiscal policy measures announced by the government helped inject much needed confidence among investors.
In the four-session week to December 13, the Bombay Stock Exchange 30-share barometer ended at 9,690.07 points, netting a rise of 724.87 points, or 8.09 per cent, from its previous weekend's close.
The broader 50-share Nifty of the National Stock Exchange also shot up by 206.95 points, or 7.62 per cent, to finish the week at 2,921.35 from its last weekend's close.
On December 7, the government announced major tax cuts across the board to boost demand and also allocated additional funds and incentives for exports, housing, textile and infrastructure to stimulate the economy hit by the global financial crisis.
The Reserve Bank also cut key short-term lending and borrowing rates by 100 basis points each and pumped in Rs 11,000 crore for housing and micro industries to induce demand and propel economic growth.
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This helped market to watch over negative developments such as a negative growth in India's industrial production as well as persistent global pressure.
The global markets remained under pressure on negative earnings outlook, job cuts and the collapse of multi-billion- dollar bailout for the beleaguered auto industry in US Senate.
The markets had temporarily reacted to RBI Governor D Subbarao's comments that the next financial year could be a more difficult year for the country.
The government's withdrawal of its affidavit filed in the Bombay High Court asserting that Reliance Industries cannot sell its KG basin gas without its approval to the pricing formula, came as a shot in the arm for market.
Boosted by the news, the country's largest private sector firm led a sharp rally in bourses at the weekend.
Recently, badly battered realty stocks attracted heavy buying interest on the Centre's multi-crore stimulus package and expectations of a second one in the coming week. Metal and refinery shares were also in keen demand.
As a result, the sectorial BSE-Realty index zoomed by 435.99 points or 25.76 per cent to end the week at 2,128.18.
Contrary to the general trend, IT stocks were under severe selling pressure following appreciation of the rupee value against the greenback and bleak global economy that could impact software companies as most of them earn a good chunk of revenues from the US. The BSE-IT index tumbled by 66.03 points or 2.80 per cent to end the week at 2,291.33.
Foreign Institutional Investors (FIIs) made fresh purchases to the tune of nearly Rs 1,766 crore after pulling out Rs 2,598.30 crore last week.
The broad-based BSE-100 Index spurted by 349.92 points or 7.66 per cent to end the week at 4,915.48 from its last weekend's close of 4,565.56.
The BSE 200 Index and the Dollex-200 also hardened to 1,134.05 points and 388.57 points at the weekend compared to their previous weekend's close of 1,055.85 and 353.34 respectively.
On the NSE, the S&P CNX Defty flared up by 202.25 points or 10.71 per cent to 2,091.45 points from 1,889.20 in the previous weekend.
The CNX Nifty Junior improved further by 287.85 points or 7.13 per cent to end the week at 4,323.85 from 4,036.00 last weekend.
