Equity markets shrugged off last week's weakness to set yet another record in the week ended September 2, 2005. Improved FII inflows, support from domestic institutional investors, good auto sales numbers, hike in prices by metal companies and huge outsourcing deal between ABN AMRO and software majors Infosys and TCS strengthened the market sentiments.
Over the week, the Sensex gained 2.86 per cent to close at 7,899.77 points. The Nifty too zoomed 2.49 per cent to end the week at 2,415.80 mark. Among the broader indices, S&P CNX 500 added 2.67 per cent, while CNX Midcap surged 2.90 per cent.
Equity investors had a tough outing on Monday on back of a weak global market and sharp rise in the international crude oil prices. After a volatile session, the Sensex closed 46 points down at 7,634 points. However, the index did well to recover from an intra-day low of 7,566 points. The Nifty too shed 19 points to end the day at 2,338 mark. The fall was led by banking and pharma stocks. FMCG and PSU scrips too were under pressure.
Equity markets were on a roll on Tuesday, as the Sensex gained 110 points to end at 7,745. In the broader markets, the Nifty ended up by 30 points. In a market wide rally, mid-caps also posted impressive gains. With the gains of around 13 per cent, Jaiprakash Associates emerged as one of the biggest gainers among the mid-caps. Among the sectoral indices, BSE IT index gained the most as it ended the day higher by 2.6 per cent. Weaker Rupee helped the tech major Infosys surge 2.4 per cent. Among the Sensex stocks, the pack of losers was led by Reliance Energy, which shed 0.89 per cent.
Equity markets extended gains on Wednesday. The Sensex gained 60 points to close above the 7,800 mark, while the Nifty added 17 points, ending the day at 2,385 points. Tata Power surged 4.5 per cent to emerge as the top Sensex gainer. On the other hand, HDFC Bank, Tata Motors and Larsen & Toubro were the top Sensex losers. Mid-caps fired from all cylinders, as the CNX Mid-cap index zoomed 0.91 per cent. Adani Exports and Alfa-Laval were the front runners among the mid-caps, both gaining in excess of 10 per cent. Among the sectoral indices, BSE Oil & Gas index gained the most, adding 47 points.
The stock markets zoomed on Thursday on back of some positive news. After the recent spurt, the international crude oil prices reversed trend and dipped to $68 a barrel. This along with encouraging auto sales and hike in price by metal companies boosted sentiments. At the end of the day, the 30-stock BSE Sensex closed 71 points up at 7,876, while the Nifty gained 21 points to end the day at 2,406 mark. At one point during the day, the Sensex had touched an intra-day high of 7,902 points. Mid-cap stocks too attracted attention, as the CNX Midcap zoomed 0.85 per cent on Thursday. IT, pharma, FMCG and PSU stocks saw buying interest.
Equity markets overcame the initial volatility to end marginally higher on Friday. While the Sensex gained 0.30 per cent to close at 7,899.77 points, the Nifty added 0.42 per cent to end the day at 2,415.80 mark. Earlier in the day, the Sensex had touched a historic high of 7,928 points. Auto stocks were in the limelight after the Finance Minister declared that the sector might get some excise duty relief.
Among the Sensex constituents, auto and technology stocks gained the most over the week. The top gainers include Tata Power (9.57 per cent), Maruti Udyog (7.94 per cent), Bajaj Auto (7.23 per cent), Gujarat Ambuja Cement (5.13 per cent) and Infosys (5.05 per cent). TCS adding 4.76 per cent over the news of outsourcing pact with ABN AMRO.
Among the sectoral indices, BSE IT surged 4.31 per cent on the back of good performances by frontline tech stocks including Infosys, TCS, Wipro and Satyam. BSE Metal too got its shine back with a gain of 3.61 per cent after metal companies announced a price hike. BSE Bankex reversed its four-week losing streak to add 0.83 per cent. BSE Healthcare (up 1.79 per cent), BSE FMCG (up 1.88 per cent) and BSE PSU (up 1.71 per cent) too had a good week.
The combined daily average turnover on both exchanges went up by 6.48 per cent to Rs 9,765 crore.
Foreign institutional investors revived their activities in the markets and invested Rs 1,069 crore over the week. Domestic mutual funds also pumped in Rs 579 crore.
Outlook
Markets are likely to react sharply to the news of fuel price hike next week. It would be interesting to see the extent of hike. However, there's some encouraging signs on FII inflows side. After a poor inflow in the previous week, foreign institutional investors pumped in over Rs 1,000 crore. Their continued support is crucial for the sustenance of this bull run. Domestic mutual funds are sitting on huge cash pile. Therefore, investment from this front is also expected to boost the overall sentiments.
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