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Sensex Closes Above 6,900

Technology, banking and metal stocks, strengthened by rally in the Reliance pack on Friday, helped the index gain 1.84 per cent over the week

Bulls continued their uninterrupted run on the Dalal Street, as the 30-stock BSE Sensex closed in the positive territory for the seventh consecutive week ended June 17, 2005. Technology, banking and metal stocks, strengthened by rally in the Reliance pack on Friday helped the index gain 1.84 per cent over the week to close at 6906.52 points. Nifty complemented Sensex and gained 1.57 per cent to settle at 2123.40 points on Friday.

Among the broader indices, S&P CNX 500 closed up 0.19 per cent, while CNX Midcap 200 slipped 1.90 per cent.

Positive sentiments prevailed through major part of the week. Under hammer for the last two trading days of the previous week, equity markets staged a comeback on Monday. While the Sensex closed 0.75 per cent up at 6,832.68 points, the Nifty gained 0.58 per cent to end the day at 2102.75 mark. Select buying interest in the index heavyweights triggered a rally led by banking and FMCG stocks.

The party continued on Tuesday as well. Helped by a rally during the closing hours, the Sensex gained 0.40 per cent, while Nifty added 0.46 per cent. Equity markets continued their upward march on Wednesday too. While the Sensex closed up 46 points or 0.68 per cent at 6,907, the Nifty gained 14 points or 0.68 per cent to finish at 2,126 mark. Among the Sensex constituents, Bharti Televentures was the biggest gainer. The scrip touched a new 52-week high after gaining 5.2 per cent. Oil stocks gained strength on the news that Petroleum Minister Mani Shankar Aiyar would be meeting Prime Minister Manmohan Singh on Thursday to discuss the issue of oil price hike.

Thursday was the only poor day for the markets when the Sensex closed down 0.10 per cent, while the Nifty slipped 0.23 per cent. However, equity markets staged a strong comeback on Friday. At the end of trading, while the Sensex closed at 6906.50, up 6.11 points, the Nifty settled at 2123.40, down 0.30 points. Even as auto, capital good, and consumer durable scrips tumbled, the Reliance pack and technology stocks saved the day for equity investors.

Among the Sensex constituents, Bharti Televentures and Reliance Industries led the pack of gainers with gains of over 6 per cent each, while Zee Telefilms, Ranbaxy Laboratories and Cipla lost over 2 per cent each. Overall, gainers (17) outnumbered losers on the Sensex.

Technology stocks gained strength. Barring Moser Baer (-8.14 per cent) and Patni Computer Systems (-2.53 per cent), all the BSE IT constituents ended in the positive territory and helped the index gain 2.83 per cent over the week.

Metal and banking stocks too zoomed up. The BSE Metal Index ended the week up 0.73 per cent, while the BSE Bankex gained 0.45 per cent.

Pharma and PSU stocks suffered-both BSE Healthcare and BSE PSU indices closed down over 0.80 per cent each. FMCG scrips too slipped.

The combined daily average turnover on both exchanges went up 1.68 per cent to Rs 6,511 crore.

Both foreign institutional investors and mutual funds pulled out from the market and booked profits worth Rs 873 crore and Rs 71 crore, respectively.

Outlook

Markets are likely to react positively to the Reliance settlement. The Reliance pack may see sharp action next week. Monsoon would have an impact on the markets sentiments. FMCG stocks might gain if it maintains its normal course. With the Sensex just 100 points short of the psychologically important mark of 7,000 points, we might see choppy sessions. However, if the FIIs and mutual funds turn positive, a Sensex level of over 7,000 mark is likely next week.