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The March Continues

Though bouts of volatility ruled the week, buying support, both from FIIs and domestic mutual funds, supported the positive sentiments

Equity markets continued their upward march in the week ended November 18, 2005. Though bouts of volatility ruled the week, buying support, both from FIIs and domestic mutual funds, supported the positive sentiment. The Sensex gained nearly 216 points or 2.55 per cent over the week to close at 8,686.65 mark. The Nifty too added 2.80 per cent to end at 2,620.05 levels.

Among the broader indices, the S&P CNX 500 gained 2.20 per cent, while CNX Midcap rose 2.15 per cent over the week.

Equity markets had a volatile trading day on Monday. However, at the end of the day, markets managed to gain some ground and ended the day in the green. After touching a high of 8,569 during the start of trading, the 30-stock BSE Sensex fell sharply to a low of 8,416. However finally, it closed up 23 points at 8,494 levels. The Nifty too ended in the green with a rise of 10 points at 2,559 mark. Buying in stocks from the auto, banking, software, pharma and telecom sectors was seen on Monday.

Markets continued their upward momentum on Wednesday as well. The mood was upbeat since the start of trading itself, as markets witnessed almost one way movement. The 30-stock BSE Sensex zoomed nearly 102 points to close at 8,595 levels. The Nifty too gained 0.94 per cent to end the day at 2,583 mark.

Though across the board buying was observed, technology and banking counters saw hectic activity. Leading the pack of gainers on the Sensex were Infosys Technologies, followed by Reliance Energy and Reliance Industries.

Equity markets had yet another positive outing on Thursday. However, volatility continued. When trading started, the markets went for a toss. But the sentiments improved later on as both Sensex and Nifty ended in the positive territory. While the former firmed up 54 points to close at 8,650 mark, the Nifty added 0.82 per cent to end the day at 2,603 levels. Mid-cap stocks too attracted buying interest, as the CNX mid-cap index gained 0.6 per cent. The pack of gainers on the Sensex was led by Ranbaxy Laboratories.

After a volatile trading session, equity markets ended in the positive territory on Friday. The Sensex gained 37 points to end at 8,687, while the Nifty closed at 2,620 points, up 0.62 per cent. Mid-caps also surged as the CNX Mid-cap index rose 0.62 per cent. Cement majors Gujarat Ambuja Cements and ACC led the charge among the Sensex stocks, as they gained 5.4 per cent and 4 per cent respectively. Among the sectors, auto stocks raced ahead- BSE Auto index clocked gains of 1.6 per cent. Bucking the trend were the banking stocks as the Bankex shed 1.3 per cent.

Among the 30 Sensex constituents, only six lost over the week. The pack of gainers was led by HDFC Bank, which rose 10.08 per cent. Reliance Energy, Gujarat Ambuja Cements, Tata Motors, and Bajaj Auto also gained over 5 per cent each.

Among the sectoral indices, BSE Bankex rose 4.66 per cent, followed by 2.05 rise in the BSE Healthcare index. BSE IT added 1.23 per cent, while BSE FMCG index could manage only 0.35 per cent over the week.

The combined daily average turnover on both exchanges rose marginally (up 0.21 per cent) to Rs 8,395 crore in the week ended November 18, 2005. The week's rally was supported by both FIIs and domestic mutual funds. Both bought shares worth around Rs 300 crore each.

Outlook
Volatility might rule the markets in days ahead, but overall positive sentiments should prevail. Continued support from FIIs and domestic mutual funds paints a rosy picture for the equity markets.