Though beaten on Tuesday, the upward momentum continued as bulls managed to call the shots this week
02-Dec-2006 •Research Desk
The Indian cricket team may be finding it difficult to bounce back, but the bulls had no such issue this week.
The first day of the week began with a bang. On Monday, the market opened higher, remained in the positive turf and scaled a new high. The Sensex closed 70 points higher to touch a new high of 13,773.59 and the Nifty closed at 3,969 (18 points higher).
Gujarat Ambuja Cements, ONGC and Wipro were the top gainers in the large cap space. Mid-caps like Pidilite Industries, ENT Network and Nagarjuna Constructions also appreciated.
Frontline bank stocks, Kotak Mahindra Bank and SBI, witnessed renewed buying interest. Cement stocks - ACC, Grasim and Ultra Tech Cement - too showed gains.
The weak international markets took their toll on the bulls who succumbed to the bears on Tuesday. The market opened in negative territory. Among the sectoral indices, almost all traded in the negative territory. Frontline IT stocks - Satyam Computers, Wipro, Infosys, HCL Technologies - were the worst hit on profit booking. However, the Sensex managed to close above the 13,600 mark as select blue chips like SBI, Grasim and Hero Honda stood firm in a falling market.
The Sensex and Nifty closed lower at 13,601.95 and 3,922, respectively. The combined turnover on both exchanges dropped to Rs 12,418.8 crore as against Rs 12, 242.1 crore on Monday.
On Monday and Tuesday, FIIs were net buyers to the tune of Rs 994.5 crore and Rs 405.6 crore, respectively. Mutual funds were net buyers on Monday (Rs 7.44 crore) but were net sellers on Tuesday (Rs 268.87 crore).
Wednesday started off with a bang, but finally ended the day with a whimper. ITC led from the front as the stock staged surged on the back of an announcement by its chairman that it intends to set up four hotels in Bangalore and another in Chennai. The other top gainers within the Sensex were all part of the cement pack - ACC, Grasim and Gujarat Ambuja. Sun Pharma was a key gainer on the Nifty.
Profit booking in Bharti Airtel, ICICI Bank, Infosys, Cipla, ONGC and BHEL caused the market to drop. But the Sensex still managed to closer higher at 13,616.73 and the Nifty at 3,928. The combined turnover rose to Rs 12,494.56 crore.
Thursday was the day that marked the expiry day for the current month derivative contracts. Following positive cues set by the US and the Asian markets, the Sensex opened with a bullish undertone and closed 79.58 points higher at 13,696.31 and the Nifty, 27 points higher at 3,955.
HDFC Bank was the top gainer in the Sensex. IT stocks - TCS, Wipro, Satyam Computers - notched decent gains. Dr Reddy's and Cipla were among the other gainers during the day. Select bank stocks, Karnataka Bank, ICICI Bank, SBI, Kotak Mahindra Bank, too gained. The combined turnover on both exchanges was Rs 17,578.83 crore.
On Wednesday and Thursday, FIIs net sellers to the tune of Rs 335.3 crore and Rs 63 crore, respectively. On Wednesday, the mutual funds turned into buyers again with net purchases at Rs 116.47 crore but were sellers again on Thursday (Rs 88.43 crore).
The week ended on a high note with the Sensex closing at 13,844.78 and the Nifty at 3,988. FIIs were net buyers to the tune of Rs 258.1 crore.
SBI and ACC were the biggest gainers this week. The CNX Mid Cap index was volatile this week. It rose almost 27 points on Monday to close at 5080.2. Fell on Tuesday, rose on Wednesday, dropped on Thursday and closed higher on Friday.