At the back of all-round buying, the BSE Sensex ended the week with a gain of 1 per cent to close at 5925 points while the S&P CNX Nifty advanced 1.2 per cent over the previous week to 1892 points. Broader indices too gained with the S&P CNX 500 up about 1.6 per cent and CNX Mid Cap 200 continuing its impressive surge with a 3 per cent gain.
The average turnover for the week was marginally down to Rs 7538 crore, a 1.7 per cent fall over the preceding week. The average advance-decline ratio on the BSE was more than 1 last week. After two weeks of caution, FIIs turned up in good numbers at the back of all round buying, and were net buyers to the tune of Rs 1812 crore. Mutual funds were net sellers last week.
The market sentiment was up following the exit poll results that seemed to indicate a favorable outcome for the ruling government. CalPERS, one of the biggest US pension funds, announced that it would invest in India, which improved the sentiment. While the markets had been lacklustre ahead of the first phase of the general elections, the mood became upbeat after the exit poll results. Dishman Pharmaceuticals made its debut with a bang on the BSE. The only IPO launch this week was that of NDTV which was oversubscribed on the very first day of its launch. IT heavyweight Satyam Computer posted good quarterly numbers closely following its peers Infosys and Wipro. Prediction of a normal monsoon mooted the sentiment towards the end of the week.
The market was gripped by nervousness on the first day of the week ahead of polls with the BSE Sensex falling 62 points. On Tuesday, the first phase of the polls began with the markets adopting a cautious approach, and the Sensex gaining 4 points. The exit polls conducted after the first phase of elections had a positive impact on the market on Wednesday. Buoyed by early indications of the BJP-led NDA inching towards majority, the BSE Sensex rose smartly by 72 points. The mood remained positive on Thursday as the Sensex continue to rise another 48 points. Dishman Pharmaceuticals, a newly listed stock began its innings on Thursday. The markets lost steam on Friday after marching ahead for three consecutive trading days. The BSE Sensex fell flat with a one-point gain. Telecom major Bharti Tele-Ventures' better than expected results couldn't perk up the Sensex on the last trading day of the week.
In sectoral indices, the BSE IT index lost 1.8 per cent. Despite the announcement of liberal bonuses and better results, software heavyweights continued to witness a weak trend. The BSE Healthcare Index was up 3.2 per cent at the back of good results of some pharma companies. Among pharma majors, Cipla and Wockhardt came out with impressive results. The BSE FMCG Index was marginally up about 0.3 per cent indicating a dull response from the investors while BSE PSU Index gained 1.7 per cent on hopes of good results. The BSE Banking Index was a clear winner among its sectoral peers with a whopping gain of 5 per cent. The banking rally was primarily led by mid-caps as results of most of them are expected in the month-end.
In global indices, the NASDAQ was up 2.7 per cent after remaining in red for two consecutive weeks. The Dow Jones too ended the week in positive terrain with a marginal change over the previous week. IT giant Microsoft results topped the market expectations on account of growing corporate demand for computers.
Outlook
The next week will see a flow of results from corporate heavyweights, expectations for which have already started building up. The market direction will be determined by corporate results and the election-related news, specifically the exit polls. Nonetheless, the undertone of the market is likely to remain positive.
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