After the previous week's bloodbath, the mood was upbeat in the stock markets in the festive week ended November 4, 2005. It was a short trading week due to Diwali and Eid holidays. However, both the Sensex and nifty almost recovered their last week's losses.
Equity markets staged a strong comeback on Monday. The sentiment was positive since the start of trading. Led by buying across most sectors, the BSE Sensex zoomed a massive 207 points to close at 7,892 mark. The Nifty too gained 55 points to end the day at 2,371 points. Mid-caps also did well. The CNX Midcap index closed up 2.07 per cent on Monday. Leading the pack of gainers on the Sensex were Maruti Udyog, Satyam Computers and BHEL among others.
Equity markets rallied on Wednesday. Building upon the over 200 points rise on Monday, the 30-stock BSE Sensex added another 180 points to end the day at 8,073 levels. The Nifty too zoomed 2.03 per cent to close at 2,419 points. Mid-cap stocks too participated in the rally, as the CNX Midcap gained 1.69 per cent. Both FII and domestic mutual funds provided support to the market. FMCG and IT counters were particularly hot on Wednesday. Select PSU and pharma stocks too saw buying interest. L&T, Grasim Industries and Gujarat Ambuja Cements led the pack of gainers, while Maruti lost the most on Wednesday.
Among the broader indices, S&P CNX 500 gained 4.17 per cent, while the CNX Midcap index added 3.80 per cent over the week.
This week's rally was primarily led by technology, FMCG and metal stocks. The BSE IT index gained a massive 6.37 per cent to recover most of its losses in October. BSE Metal too got its luster back and added 6.50 per cent. Under hammer for the previous four successive weeks, FMCG stocks staged a strong comeback, with the BSE FMCG rising 6.48 per cent over the week. Among other sectoral indices, BSE Bankex gained 3.57 per cent, while BSE PSU added 3.32 per cent.
The combined daily average turnover on both exchanges fell 35.41 per cent to Rs 5,333 crore in the week ended November 4, 2005.
This week's rally was supported by both FIIs and domestic mutual funds. Both bought shares worth Rs 68 and 143 crore, respectively.
Outlook
After the previous week's depression, festivities have returned to the stock markets one again. The two trading days last week saw tremendous buying interest. Both FIIs and domestic mutual funds returned to the markets. If this continues, we might see another positive week ahead. However, sentiments are likely to be volatile.
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