The Indian equity markets marched ahead in the week ended August 5, 2005. While the 30-scrip BSE Sensex gained 1.55 per cent to close at 7,754 points, the Nifty added 2.11 per cent to end the week at 2,361.20 mark.
Among the broader indices, S&P CNX 500 closed up 2.89 per cent, while the mid-cap stocks' barometer CNX Midcap surged 4.23 per cent.
Markets ignored heavy rains in Mumbai and continued their upward march on Monday. At the end of a choppy trading session, the Sensex closed at 7,669.45, up 34 points from its Friday's close. The Nifty too gained 0.25 per cent to end the day at 2,318.05 points. Bluechip stocks led Monday's rally. Among the Sensex constituents, Ranbaxy Laboratories gained the most--the stock added a whopping 9.3 per cent. However, other pharma stocks ended the day in the negative zone. HLL surged on back of robust quarterly numbers.
Equity markets scaled new heights on Tuesday, as the Sensex crossed 7,750 level, before closing at 7,756 points. The Nifty too gained more than a per cent to end at 2,353 points. FII inflows remained robust and the markets seem to be totally unphased by the rising crude oil prices. In a market-wide rally, all the major sectors posted gains. Tata Motors, RIL and TCS emerged as the top Sensex gainers. Reports that the government may issue bonds to offset oil PSUs subsidies, generated heavy buying interest in oil counters. MRPL and Kochi Refineries gained over eight per cent each.
Equity markets came off the highs to end flat on Wednesday. The Sensex zoomed to 7,843 intra-day, before closing flat at 7,756. The Nifty too, gained marginally before ending at 2,357 points. RIL surged earlier in the day, on the rumours of an overseas acquisition by the company, which was supposed to be announced in its AGM on Wednesday. However, the scrip shed in excess of 3 per cent subsequently, as there was no such announcement, dragging the indices down. Tech and FMCG stocks surged, while sectors like auto, cement and pharma witnessed profit-booking and ended the day in red.
Helped by robust buying activity, the equity markets shrugged off Wednesday's weakness to continue their bull run on Thursday. The Sensex crossed yet another milestone by touching a figure of 7,826 before ending the day at 7,797.08 points, up 0.52 per cent. The 50-share Nifty too gained 0.46 per cent to close at 2,367.80 mark. Buying interest in the index heavyweights triggered Thursday's rally. FMCG, pharma, metals, and engineering stocks attracted inflows. Among the Sensex constituents, L&T led the pack of gainers--the scrip rose 5.67 per cent.
Equity markets revered their nine-day-long rally to see a correction on Friday. While the Sensex lost 43 points to end the day at 7,754, the Nifty slipped nearly seven points to close at 2,361.20 mark. However, FII continued their support to the markets. Frontline stocks, that were largely responsible for the last few days rally, led Friday's fall. While the auto and technology stocks were among the major losers of the day, steel and PSU stocks maintained their momentum and ended in the positive territory.
Among the Sensex constituents, Tata Power led the pack of gainers after the company announced that it would invest Rs 18,500 crore in new projects in the next five years. The stock surged 9.28 per cent over the week.
Ranbaxy Laboratories followed with gains of 7.88 per cent on the back of news that the company had received tentative approval from USFDA to manufacture and market Gilmepiride tablets.
Among the sectoral indices, metal stocks staged a strong comeback. The BSE Metal index surged 6.60 per cent over the week. Banking stocks slipped this week with the BSE Bankex ending down 2.24 per cent. BSE FMCG and BSE PSU added 2.51 and 3.31 per cent, respectively.
The combined daily average turnover on both exchanges went up by 9.79 per cent to Rs 10,802 crore.
Foreign institutional investors continued their interest in the Indian equities and pumped in Rs 2,737 crore over the week. Mutual funds too invested Rs 281 crore.
Outlook
The equity markets are likely to witness some volatile trading sessions in the week ahead. Even as the overall mood seems to be positive on back of some robust quarterly numbers declared by companies, correction might be on the cards. Continued FII support is a plus.
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