VR Logo

Markets Post Smart Recovery

The Sensex shrugged off initial weakness and surged towards the end of the week to close 146.77 points or 1.57 per cent up at 9,521 levels on December 20, 2006

Index heavyweight Reliance Industries dominated the stock markets' sentiments in the week ended January 20, 2005. A special trading session for the stock was held at the BSE and NSE from 8 am to 9 am on Wednesday to discover the price of the demerged entity. Over the week, the 30-stock BSE Sensex closed 146.77 points or 1.57 per cent up at 9,521 levels. The Nifty too gained 1.77 per cent to close at 2,901 mark. In the broader market, the S&P CNX 500 closed 1.05 per cent, while CNX Midcap ended the week with gains of 0.28 per cent.

Markets had an inauspicious start to the week. The Sensex fell for the fifth straight day on Monday--63 points to 9,311.19. Investors reacted sharply to the quarterly numbers of Infosys Technologies and Tata Consultancy Services. Infosys shares fell sharply even as the software major reported earnings as per the market expectations. The unfolding story of Reliance Industries demerger also triggered a fall in the stock, which lost 1.4 percent to Rs 873.10 as investors sold ahead of the special trading session for the stock.

Markets ended flat on Tuesday. As the clouds over the Reliance Industries cleared to an extent, investors rushed to buy the stock. As a result, the scrip gained 6.3 percent. Investors bought shares in expectation that the value of Reliance would be higher on an ex-demerger basis. Over the day, the Sensex closed up three points at 9,314.13 levels.

Stock markets dipped once again on Wednesday following weak Asian markets. Reliance Industries led the pack of losers--the stock ended 2.8 per cent down from its closing price of Rs 713.95 set at a special trading session held early on Wednesday to ascertain its value. Over the day, the Sensex fell nearly 77 points.

Thursday brought some cheer to the markets. Firm Asian markets and huge gains registered by software major helped the Sensex zoom a massive 212 points to 9,450 levels. Indian stocks continued their surge on Friday as well. Better-than-expected quarterly results of Maruti and ICICI Bank assisted the rise. Over the day, the Sensex added 71 points.

Among the Sensex constituents, Bharat Heavy Electricals Limited led the pack of gainers over the week. The stock surged 8.17 per cent. Wipro and Maruti too added close to 8 per cent each. Among the sectoral indices, BSE Metal added 1.35 per cent, followed by 0.44 and 0.13 per cent rise in the BSE FMCG and BSE IT indices.

The combined daily average turnover on both exchanges went up by 3.26 per cent to Rs 12,321 crore in the week ended January 20, 2006. The FIIs invested nearly Rs 379 crore. Domestic mutual funds turned net sellers and pulled out Rs 733 crore over the week.