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Celebrating the Weekend

After the previous week's surge in the stock markets, domestic indices kept the momentum going. The Nifty was up 2.81 per cent, while the Sensex gained 2 per cent over the week

After the previous week's (June 19-June 23) surge in the stock markets the domestic indices kept the momentum going. The Nifty was up 2.81 per cent while the Sensex gained 2 per cent over the week.

Among the broader indices S&P CNX 500 gained 1.29 per cent, while the CNX Mid Cap ended the week down marginally by 0.73 per cent.

Among the sectoral indices, BSE FMCG index gained the most -- 4.24 per cent, followed by BSE IT at 3.2 per cent. The metal index was up 1.91 per cent, while the BSE Bankex, PSU and Healthcare indices ended the week in the red, losing 2.27, 1.05 and 1.51 per cent, respectively.

The bluechip shares, led by index heavyweights and metal stocks, tumbled on profit-booking and pulled the markets down on Monday. The Nifty, which closed the previous week at 3,042 points, lost 60 points to close on 2,943 points. Similarly the BSE Sensex lost over 359 points to close the first day of the week at 10,042 levels.

After last week's sharp rally, investors rushed to book profits as they were not taking chances in the wake of uncertainty over the outcome of forthcoming US Fed Reserve meeting on interest rate hikes. The Asian markets witnessed a mixed trend. Metal scrips lost the most. The fall in Tata Steel was despite hopes of consolidation among global steel producers, triggered by the high-profile merger between Arcelor and Mittal Steel. This was the only day in the week when the FIIs were net buyers to the tune of Rs 7 crore.

On Tuesday, the markets were volatile. After opening flat, the Sensex gyrated 323 points between the day's high of 10,224 and low of 9,902, before ending at 10151, up 109 points, or 1 per cent. The 50-share Nifty rose 39 points to end at 2982.

Tuesday's gain in the Sensex was despite the fact that FIIs sold Indian equities. RIL saw volatile movement on June 27. The stock rose to a high of Rs 1,011 but came off sharply to end with a small gain of 0.4 per cent at Rs 986. Chairman Mukesh Ambani said at the company's AGM that the company had discovered oil in its exploration block in the Krishna-Godavari basin apart from announcing Rs 25,000 crore retail foray. Cigarette major ITC was the biggest gainer among the 30 sensex stocks. Its share price climbed 6.2 per cent to Rs 176.2. There was good buying in some bluechip shares.

Fear of Fed rate hike loomed large on the markets on Wednesday also. Investors across Asia were busy analysing the implications of a possible rise in interest rate on their economies, which was reflected in the subdued mood across Asian markets. The BSE 30-share Sensex gyrated between the day's high of 10,205 and low of 9,910, resulting in intra-day volatility of nearly 300 points. The Sensex ended the day down 22 points at 10129.70 while Nifty as lost marginally to close at 2981 levels.

On Thursday, the Sensex closed up 32 points at 10162, while the Nifty closed at 2997, up 16 points. According to some brokers, the market had already discounted the possibility of a 25 basis point hike. The FIIs were net sellers to the tune of Rs 39 crore. The Sensex underperformed most other Asian markets. Index heavyweight Reliance Industries gained 0.8 per cent to end at Rs 1,009 on the back of news that the company's gas reserves have trebled to 35.4 tcf. Among other heavyweights, ICICI Bank, ITC and HLL ended weak. A good amount of selective buying was witnessed in bluechip shares like Hero Honda, HDFC Bank, L&T, ONGC and Ranbaxy Laboratories. These stocks gained between 2 and 4 per cent.

June 30 was a well-deserved weekend for the markets across the world on the news of 25 bps hike in interest rates by the Federal Reserve.

The mood remained buoyant, as speculation over the outcome of the Fed meeting ended. The jubilant mood was reflected in the domestic indices also. The BSE 30-share Sensex ended strong with a gain of 447 points, or 4.4 per cent, at 10,609, while the Nifty climbed 130 points, or 4.4 per cent, to 3128.

There was extensive buying in metal, FMCG, capital goods, technology and auto stocks.

Over the week, the FIIs were net sellers to the tune of Rs 450 crore, while mutual funds pulled out Rs 155 crore.