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Continuing The Winning Streak

Foreign Funds has kept fueling the growth

The markets might well have made history this week. In what can be termed as the longest weekly winning streak since 2005, Sensex rose for its consecutive  13th weekly gain. Buoyed by expectations of the present UPA government pushing for reforms, the ‘Dalal Street’ ran high on sentiments.

Foreign money kept flowing at the Street through out the week propelling the Sensex to close above the 15,100 levels, even the domestic funds rolled in the moola further aiding the current upsurge.

The Foreign Institutional Investors (FII) bought stocks worth Rs 34.74 billion during the week which was the highest amount seen in the past 55 weeks. While, Domestic Institutional Investors (DII) bought stocks worth Rs 1.7 billion during the week.

Finally, the Sensex added 3.3 %  while and NSE Nifty added 3.1 percent. The Sensex hit an intra-week high of 15,257 and low of 14,602. On the other hand, the Nifty hit an intra-week high of 4,637 and low of 4,450.

With the going very smooth, the country's top 10 firms added Rs 29,000 crore to their market capitalization last week, with public sector trading firm MMTC contributing the major chunk.

On the other hand, state-owned MMTC jumped to the fourth place in the pool of top 10 firms and added Rs 33,201 crore to its market capitalization, taking the total valuation to Rs 1,71,040 crore during the week ending June 5.

Shares of the company surged 24% to settle at Rs 34,208.05 on the BSE at the end of Friday's trade. The top-10 coveted club, which comprises of four private sector and six public companies, added Rs 29,777 crore to their total market valuation to Rs 16,88,213 crore. Last week, the total market cap of the companies stood at Rs 16,58,436 crore.

Meanwhile, the country's most-valued firm, Reliance Industries, lost Rs 10,332 crore from its market valuation last week, with its total market cap standing at Rs 3,48,101 crore at the end of Friday's trade.The company had a market valuation of Rs 3, 58,433 crore in the previous week.

Two state-run firms Oil and Natural Gas Corporation (ONGC) and public sector trading firm NTPC together added Rs 4,520 crore. At the end of Friday's trade, the market cap of ONGC stood at Rs 2, 52,526 crore and NTPC at Rs 1,81,153 crore.

With the government chalking out roadmaps for reforms has greatly helped in boosting the confidence of the investor. Take for instance the behavior of the market on June 4. The stock markets came alive after the President Pratibha Patil unveiled the Congress-led UPA government’s agenda in Parliament which focused on disinvestment, pension, exports, housing, infrastructure and small and medium enterprises which were the worst affected areas.

Analysts are of the opinion that the Congress getting such a large majority is something very big and a strongly backed coalition could try to implement more audacious reforms.

The Sensex ended the week up 0.63%, or 94.87 points, at 15,103.55, its best close since Aug. 12 last year. Twenty index components rose, while in the broader market, gainers led losers 1,520 to 1,325 on relatively heavy volume of 830.9 million shares. Meanwhile the 50-share NSE index - Nifty - rose 0.3% to 4,586.90.

On the other hand, equity markets advanced in the US, with financials, oil and commodities stocks leading from the front. Reports on pending home sales, manufacturing and services offset GM’s bankruptcy filing.

Asian markets gained, led by Shanghai and Hang Seng after China’s factory activity expanded in May. Asian markets were higher on Friday after a Wall Street rally overnight. Japan's Nikkei rose 1%, while Morgan Stanley Capital International (MSCI) measure of other Asian markets advanced 1.2%. Bank of England and European Central Bank left their key rates unchanged amid continued signs that economic slump is bottoming.

Fewer US workers filed new claims for jobless benefits for a third straight week last week and productivity rose faster than expected in the first quarter, data showed on thursday, supporting budding hopes that the recession is losing force.