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Markets ended the Year 2005 on a positive note. Supported by both the FIIs and domestic mutual funds, the Sensex added 1.52 per cent over the week

Equity markets ended the Year 2005 on a positive note. Supported by both the FIIs and domestic mutual funds, the Sensex added 1.52 per cent over the week ended December 30, 2005, while the Nifty surged 1.13 per cent over the same period. Among the broader indices, the S&P CNX 500 closed up 1.36 per cent. The mid-cap stocks too attracted considerable interest with the CNX Midcap gaining 1.67 per cent over the week.

The equity markets had poor start to the week on Monday. Under pressure from heavy selling, the Sensex plunged over 171 points to end the day at 9,086 mark. The index opened weak on Monday at 9,254 levels. It fell sharply thereafter to touch a low of 9,051 points towards the end of the day. At one point in time, the index was down a massive 200 points. But it recovered some ground to close at a loss of 171 points. The Nifty followed with a loss of close to 2 per cent on Monday to 2,749 levels. Mid- and small-cap stocks too were under pressure. The pack of losers on the Sensex was led by Bharti, which closed down 5.21 per cent.

Shrugging off Monday's losses, equity markets staged a strong comeback on Tuesday. On the opening bell, the 30-stock BSE Sensex started the day weak but soon gained momentum to set the stage for a rally. The index moved in the range of 9,020.80 - 9,297.07 on Tuesday to end the day up a massive 197.27 points at 9,283.16 levels. The Nifty also gained 2.3 per cent to close at 2812 levels. Across the board rally marked the day, with the banking, IT and FMCG stocks leading the pack of gainers.

Equity markets saw yet another volatile trading day on Wednesday. The 30-stock BSE Sensex opened on a positive note and saw a sharp spurt to touch an intra-day high of 9,350.82 levels in the very first trading hour of the day. Frequent bouts of volatility followed that dragged the index down to a low of 9,207.27 points in the afternoon session. Though the index gathered some momentum thereafter, it again fell to end the day at 9,257.51, down nearly 26 points from its previous day close. The Nifty closed at 2,794, down 11 points. Mid-caps baromerter CNX Midcap index closed flat, up 0.07 per cent over the day.

Equity markets had a positive outing on Thursday. The 30-stock BSE Sensex opened firm and remained in the positive territory throughout the day, though volatility continued to trouble investors. The index moved in the range of 9,271.63 - 9,338.11 levels and closed at 9,323.25 mark, up over 65 points from its previous day's close. The Nifty settled at 2,822 with a gain of 1 per cent over the day. FMCG stocks led the pack of gainers. Banking stocks bucked the trend, with the BSE Bankex ending the day in the red.

Equity markets signed-off year 2005 on a positive note. BSE Sensex gained 75 points to end at 9,397.93 points, while the Nifty added half a per cent before ending at 2,836 points.

Among the 30 Sensex stocks, 22 gained over the week. The pack of gainers was led by 5.61 per cent rise in Reliance Industries. L&T (up 5.51 per cent) and Grasim Industries (up 4.41 per cent) were among the top gainers of the week.

Among the sectoral indices, BSE Healthcare (up 2.16 per cent) and BSE Metal (up 2.15 per cent) ended in the positive territory. The BSE FMCG index too rose over 2 per cent.

The combined daily average turnover on both exchanges fell by 15.91 per cent to Rs 9,398 crore in the week ended December 30, 2005. The FIIs invested nearly Rs 600 crore. Domestic mutual funds too chipped in with investments worth Rs 321 crore.

Outlook
After a brief pause last week, festivities have returned to equity markets once again. Though FIIs slowed down inflows, domestic mutual funds chipped in to provide the much-needed support. Going forward, the result season and build up to the Budget 2006 would influence the market sentiments.