The equity markets surged to touch a two-month high during the week ended May 27, 2005. The BSE Sensex gained 3.20 per cent to end the week at 6707.72 mark while the NSE Nifty gained 4.22 per cent during the week. The broader based index S&P CNX 500 index gained 3.02 per cent.
Amidst the gains posted by the market, mid-caps witnessed profit booking towards the end of the week. The barometer index for mid cap stocks, the CNX Mid Cap 200, was up 0.44 per cent by the end of the week. Short covering in the futures & options segment and positive movements in US markets helped the bourses to rise on each of the trading sessions during the week.
Among the sectoral indices, the BSE Healthcare index gained the most as it rose by 5.69 per cent, propelled by the 12.71 per cent rise in Ranbaxy Laboratories Ltd and over 5 per cent surge in Cipla Ltd. Tech major Wipro gained around 9 per cent to help the BSE IT index end the week up by 5.06 per cent. The BSE FMCG index gained an impressive 4.46 per cent, thanks to the smart gains posted by HLL (6.23 per cent) and ITC ltd. (4.88 per cent).
Among the other indices, The BSE PSU index (2.91 per cent), BSE bankex index (1.12 per cent), and BSE Metal (1.11 per cent) also ended the week in the positive territory.
The week's average turnover on the NSE and BSE surged to over Rs 6,500 crore. Prominent among the very few losers at the Sensex were Zee Telefilms Ltd, which lost over 7 per cent, and HDFC Ltd., that shed 0.11 per cent. Heavy withdrawals by the FIIs continue to remain a cause of concern for the Indian equity markets. The FIIs withdrew Rs 317.2 crore during the week. In contrast to this, the Mutual funds invested Rs 835.06 crore in the equity markets.
Outlook
Heavy FII outflows may turn out to be a cause of concern in the coming week. Markets are likely to take direction from the Q4 results scheduled for the next week, prominent among which are Mahindra & Mahindra, Colgate Palmolive, Indian Oil Corporation, Tata Power, Tata Chemicals, and Cummins India. Monsoons are also likely to dictate the near term trend of the equity markets. The undertone continues to be bullish and the markets are likely to remain in the positive territory.
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