On Tuesday, the Bombay Stock Exchange sensitivity index, Sensex lost 3.5 per cent, falling 370.10 points to 11,001.75 points. The signs for the winning 7-week streak coming to an end looked ominous. The very next day, the same index marched to a 3.65 per cent gain, more than wiping out the loss suffered just a day earlier and managing to hurdle over a host of records .
For the retail investor, it may or may not go down to prove that markets are irrational, but it was a great way to boost sentiment all around on the last trading day for the month of April.
The broader-based National Stock Exchange Nifty also jumped by as much as 3.3 per cent to 3,473.95 percent.
There was joy on the streets in front of the BSE building in Mumbai, and that stemmed not just from the day’s highs, but also from the fact that the index had managed a 17.45 per cent monthly jump—the best performance in almost 10 years (see table). There was even more good news as it also notched up the eighth consecutive week of gains, besides becoming the best-performing index in Asia—among the major ones.
But, what caused it? It can’t even be said that the initial spark was lit by global cues as the US and UK indices did not exactly end on a positive note, while Japan was a major loser (Dow Jones was down by 0.10 per cent, while the Nasdaq ended flat, FTSE ended 1.79 per cent down on Tuesday. On Wednesday, FTSE 100 was up by 1.41%, while Nikkei ended down by 2.67 per cent, and the Hang Seng closed up by 2.76%.)
However, foreign money was doing all the pushing by thrusting some $1.4 billion into the markets for the month.
The net result on the Sensex was a gain of 401.50 points to a high of 11,403.25 points.
The weekly gain was 0.65 per cent—Friday closing at 11,329.05 points and closed on Wednesday at 11,403.25 points (tomorrow and day after the markets will remain closed due to the general Parliamentary elections and Maharashtra Day respectively).