MUMBAI: Boosted by positive global cues, rate cut hopes in the domestic market and strong foreign fund flows, the sensex rallied 754 points, or 4.7%, this week, its biggest weekly gain this year, and closed at 16,719. On Friday, after a shaky start because of weak Asian trades, the index made a smart recovery in the closing hours to settle with gains. However, dealers said that these gains were mostly because of speculative buying ahead of the weekend. The day's rally also helped nifty on the NSE close at 5,068, above its 200-day moving average, a crucial technical level.
Friday's rally, which came on the back of a Rs 202-crore net buying by FIIs, added about Rs 28,000 crore to investors' wealth with BSE's market capitalization now at Rs 59.1 lakh crore.
During the week, the sensex gained on the back of talks of a possible move towards a European fiscal union, and a bond sale by Spanish government that was sold at rates less than what was expected by most analysts, partially easing concerns about the country's struggling banking system. Positive global cues also helped ease pressure on the rupee which on Friday closed at 55.46 to a dollar, its first weekly higher close in the last 10.
Friday's rally, which came on the back of a Rs 202-crore net buying by FIIs, added about Rs 28,000 crore to investors' wealth with BSE's market capitalization now at Rs 59.1 lakh crore.
During the week, the sensex gained on the back of talks of a possible move towards a European fiscal union, and a bond sale by Spanish government that was sold at rates less than what was expected by most analysts, partially easing concerns about the country's struggling banking system. Positive global cues also helped ease pressure on the rupee which on Friday closed at 55.46 to a dollar, its first weekly higher close in the last 10.
The day's gains came on the back of a strong rally in capital goods, real estate and FMCG stocks while IT stocks closed lower, mainly because of the recent strength of the rupee. The day's session also saw infrastructure stocks, led by L&T, rallying on the back of the recent statement by the prime minister that the country was ready to give a fresh boost to the sector. L&T closed 2.5% higher at Rs 1,309. Metal stocks gained after China on Thursday eased rates which, among other things, could also raise demand for commodities, dealers said. As a result, Sterlite rose 3.5% to close at Rs 101. Other sensex gainers were Gail, up 3.1% at Rs 332, and BHEL, up 1.6% at Rs 221.
During the coming week, a series of domestic and global economic data are expected to keep the market choppy, dealers said.
