The first two days of the week treated investors well and the major indices rose. Banking shares advanced on both days. Bharti Airtel dropped on Monday on fears that growth prospects may be hit by the planned expansion of Reliance Communications.
Despite extremely volatile movements in the market on Wednesday, it closed more or less flat but in positive territory. Indices rose on speculation that a possible US Federal Reserve rate cut next week may add pressure on the RBI to ease local rates.
The market had a weak start on Thursday but buying in metal, bank and auto stocks lifted the Sensex to hit a high of 18,900. However, profit booking witnessed towards the fag end of the session dragged the markets from their respective highs. The week ended on a very positive note with the Sensex and Nifty soaring to new highs.
L&T (28.24%), Reliance Energy (25.26%) and SBI (24.97%) were the biggest gainers amongst Sensex stocks. All banking stocks - SBI, HDFC Bank, ICICI Bank - gained. Infotech stocks fared poorly with TCS (-3.33%) and Infosys (-3.12%) being the worst performing stocks. Wipro (-0.12%) too fell but Satyam gained (3.16%).
Amongst the sectoral indices, BSE Bankex, BSE Consumer Durables and BSE Realty rose consistently throughout the week. So did BSE Capital Goods and BSE Metal, both of which did extremely well.
This week, SEBI announced its decision to allow more overseas institutions like pension funds, charitable institutions, foundations and university funds to be able to register in India. With the P-Note issue behind, the market will now wait for the outcome of the RBI meeting on October 30.
On the global front, central banks across the globe will wait for the decisions made at the US Federal Reserve's meet on October 31. Incidentally, this week also saw crude oil touch $91/barrel in New York. This was on the back of a drop in US stockpiles and also concern that supply from the Middle East may be disrupted due to fresh sanctions against Iran, the Turkey-Iraq showdown. A weak dollar too contributed.