Robust FII inflows strengthened equity markets rally in the week ended October 26, 2005. Helped by across the board buying interest, the BSE Sensex gained 2.27 per cent over the week to close at an all-time high of 8,884.26 points on Saturday. The Nifty too surged 2.52 per cent to close at 2,686 mark. Among the broader indices, the S&P CNX 500 added 2.40 per cent, while the CNX Midcap gained 1.84 per cent.
Equity markets had a poor start to the week on Monday. The Sensex shed 76 points to end at 8,610, while the Nifty lost 0.7 per cent to close at 2,602 points. Among the Sensex stocks, Hindalco lost a massive 8.28 per cent, while Reliance Energy and ITC Ltd shed in excess of 3 per cent. Midcaps also ended in red- CNX Mid-cap index ended down 0.6 per cent. Among the sectors, banking stocks came under the hammer. As a result, Bankex lost the most among the sectoral indices, shedding 2.3 per cent. Bucking the trend though, were auto stocks as the BSE Auto index raced ahead by 1 per cent.
Equity markets lost for the second straight day on Tuesday. Markets opened on a weak note, gained some strength towards the afternoon session but fell sharply afterwards. After a choppy session, the BSE Sensex closed 76 points down at 8,534 mark. The Nifty too shed 1.14 per cent to end the day at 2,572 levels. Mid-cap stocks too were under pressure, as the CNX Midcap index fell 0.67 per cent. Among the major losers of the day were Ranbaxy Laboratories, Tata Steel and Maruti Udyog.
The equity markets staged a strong comeback on Wednesday, ahead of the F&O expiry on Thursday. However, the ride was bumpy. After a positive start, markets lost some steam towards the afternoon session but regained strength thereafter to end the day on a positive note. At close, the 30-stock BSE Sensex was up 103 points to close at 8,638 mark. The Nifty too rallied and rose 1.4 per cent to end the day at 2,608 levels. Mid-cap stocks were not far behind, as the CNX Midcap index added 0.25 per cent on Wednesday. Leading the pack of gainers on the Sensex were Wipro, followed by Satyam Computer and Maruti Udyog.
The party continued for equity investors on Thursday as well. Led by FMCG stocks, the markets opened on a positive note, gained strength as the trading progressed and ended the day with handsome gains. At close, the 30-stock BSE Sensex gained 106 points to end the day at 8,744 mark. The Nifty too zoomed 1.01 per cent to close at 2,635 levels. Mid-cap stocks too had a positive day as the BSE Midcap index gained 0.67 per cent. Among the Sensex constituents, ITC, Grasim Industries and HDFC gained the most on Thursday. Bucking the trend, select pharma stocks fell.
The equity markets' march continued on Friday as well. Led by huge buying interest from foreign institutional investors, the markets opened on a positive note. The real push came towards the end the of the day at around 2 pm. At close, the 30-stock BSE Sensex gained 109 points to race to an all-time high of 8,853 mark. The Nifty added 1.11 per cent to close at 2,664 levels. Mid-cap stocks too saw a lot of buying interest, as the CNX Midcap index closed 1.11 per cent up. Among the Sensex constituents, the pack of gainers was led by HLL, Maruti Udyog and BHEL. Equity markets gained further during the three-hour trading on Saturday.
Among the Sensex constituents, six stocks lost over the week, while 24 registered gains. The pack of gainers was led by 8.20 per cent rise in HLL, followed by HDFC (up 7.22 per cent), and Grasim Industries (up 6.46 per cent).
Among the sectoral indices, the BSE FMCG index surged 4.37 per cent, followed by 2.71 per cent rise in the BSE Healthcare Index. Bucking the trend, the BSE Metal slipped 4.12 per cent over the week.
The combined daily average turnover on both exchanges rose marginally (up a little over 1 per cent) to Rs 8,495 crore in the week ended November 26, 2005. The week's rally was supported by huge FII inflows to the tune of Rs 1,651 crore. Mutual funds too poured money into the markets.
Outlook
The mood is positive. Heavy flow of money from both FIIs and domestic mutual funds is an encouraging sign. Many believe that the Sensex is about to breach the 9,000 mark. That may happen next week, as we are only 116 points short of the milestone. However, the road to the historic point may be bumpy.
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