It was a historic week for the equity markets. The 30-stock BSE Sensex crossed the psychologically crucial barrier of 9,000 mark on Monday. During the week ended December 2, 2005, the index crossed the landmark several times before signing off the week at 8,961.61 points, up 0.87 per cent over the week. The Nifty too rose 0.44 per cent to close at 2,697.95 mark.
Among the broader indices, the S&P CNX 500 gained 0.93 per cent. Mid-cap rose more, with the CNX Midcap index gaining 1.33 per cent over the week.
Stock investors had a ballistic start to the week on Monday. Encouraged by across the board buying interest, primarily led by FMCG and PSU stocks, the 30-stock BSE Sensex breached the much-awaited 9,000 mark. The sentiment was positive throughout the day. The index came close to the 9,000 mark several times over the day and finally crossed it towards the end of the day to touch a high of 9,004.72 mark. Finally, the Sensex closed 142 points up at 8994.94 levels. The Nifty too surged 1.79 per cent to 2,712 mark. Mid-cap stocks too registered good gains with the CNX Midcap index rising 1.41 per cent over the day.
Markets paused for a breather on Tuesday. The five-day-long rally reversed, as the profit booking triggered a correction. Earlier in the day, the Sensex had opened on a positive note above the psychologically important 9,000 mark. However, profit booking snapped the rally immediately. Throughout the day, the 30-stock index moved in the range of 8,875.82 to 9,000.65 levels before ending the day at 8,931.16 mark, down 63.78 points from Monday's close. The Nifty too shed 0.51 per cent to end the day at 2,698.30 mark. Mid-cap barometer CNX Mid-cap index dipped 0.45 per cent. Among the major losers of the day included FMCG and banking stocks.
Equity markets ended weaker on Wednesday. After opening in the positive territory, the Sensex traded above the 9,000 level for a short while after which it slipped to end at 8,789, down 142 points. The Nifty too shed 1.7 per cent to end at 2,652 points. An across the board weakness was witnessed as all the sectoral indices ended in red. BSE IT lost the most, as it shed more than 2 per cent.
Markets reversed their losing streak on Thursday. The two-day depression gave way to huge rally, as across the board buying interest resulted into huge gains today. However, volatility troubled investors. After moving in the range of 8,770.59 - 8,958.49 points, the 30-stock BSE Sensex closed at 8944.78, up nearly 156 points. In the broader markets, the Nifty added 1.76 per cent to end the day at 2,703 levels. Mid-cap stocks too clocked smart gains, as the CNX Midcap index rose 1.36 per cent. Leading the charge on the Sensex were technology and pharma stocks.
After a positive start, equity markets' sentiments weakened towards the end the day on Friday. The 30-stock BSE Sensex, which traded above the crucial 9,000 mark for the major part of the day, dipped sharply during the closing hours to end flat at 8961.61 mark, up 16.83 points. Through the day, the movement was choppy, spread in the rage of 8,946.37 - 9,057.76 points. In the broader markets, the Nifty shed a point to end the day at 2,697.95. Before this, the index had scaled to a lifetime intra-day high of 2,730.70 levels. Midcap stocks fared well, as the CNX Midcap index rose 0.38 per cent.
Among the 30 Sensex stocks, 19 ended the week in the green. The pack of gainers was led by Reliance Energy, which rose 8.81 per cent. ACC, Grasim Industries and Cipla too clocked smart gains and rose over 4 per cent each.
Among the sectoral indices, BSE Metal got its lustre back to return 2.39 per cent. This was closely followed by BSE IT, which added 2.13 per cent. BSE Healthcare (up 1.04 per cent), BSE FMCG (up 0.90 per cent), BSE PSU (up 0.83 per cent) and BSE Bankex (up 0.53 per cent) also ended in the green.
The combined daily average turnover on both exchanges rose sharply by 42.24 per cent to Rs 10,302 crore in the week ended December 2, 2005. This week's rally was supported by over Rs 1,138 crore investment by FIIs. Mutual funds, though, turned net sellers and booked profits worst Rs 242 crore.
Outlook
Markets are likely to respond positively to 8 per cent growth in the Indian economy in the quarter ended September 2005. This coupled with the continuing support from FIIs might see yet another ballistic week in the stock markets. However, sustaining the Sensex levels at 9,000 mark might be a challenge in view of the frequent profit bookings near the crucial levels. Hence, be ready to see choppy trends in days to come.
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