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Volatile but Buoyant

Volatile but Buoyant

This past week was eventful. The RBI chose not to raise rates. The government announced a fuel price cut. It was the also the week of the F&O expiry. Overseas, the Obama regime managed to push through its ambitious stimulus package. Traders and investors alike are hoping that the much-hyped stimulus will be able to achieve what the previous ones have failed to do so far.
On the back of firm cues from the overseas markets, the bulls staged a strong comeback on Tuesday and Wednesday. Though Tuesday was a volatile day, all round buying in scrips across sectors led the indices to close in the green. Among the Sensex components, 28 stocks ended in the green and only 2 stocks ended in the negative terrain. On Wednesday, 27 ended in the green.
On Thursday, the bulls took a breather. After a strong start to the session, key indices were unable to hold on to their gains on the back of a rise in the inflation and weak cues from the European markets. The realty, power and capital goods stocks witnessed offloading. The Sensex and Nifty marginally slipped. The February futures traded at a steep discount. F&O data confirmed the widely held view that the 2-day rally was led by short-covering.
Friday once again turned out to be volatile. The market wiped out losses of over 149 points incurred in the first half after a strong bout of buying led by JP Associates, Hindalco Industries and DLF triggered a wide-spread buying. Later, the market slumped only to pick up once again as the Sensex witnessed a sharp turnaround in afternoon. Gains in heavyweights, realty, metal and oil stocks propelled it to an intra-day high of 9,438. The week finally ended on a good note with the Sensex closing at 9424 and the Nifty at 2874.