Saturday, May 23, 2009

Best weekly sensex gain in 17 yrs - 23 May 2009

The week that started with an unbelievable 17.3% gain for the BSE sensex, ended on a winning note with the weekly gain at over 14%, the best for the index in the last 17 years. On Friday, although foreign funds sold, a late surge added 151 points to the index to 13,887 points at close. The week's gains also extended the sensex's run to its 11th consecutive weekly gain, its longest run in four years. The day's gains also reversed a two-session losing streak for sensex.

A host of factors would decide the market's direction next week. Other than further clarity on the government's economic policies, expiration of current month's derivatives contracts would also decide market trend. In addition, global cues will also impact the trend on Dalal Street, market players said.

Friday's rise in most indices came on the back of strong buying in capital goods, banking and healthcare stocks while consumer durables and auto stocks came under selling pressure. The day's rally added about Rs 52,000 crore to investors' wealth with BSE's market capitalisation now at Rs 45.4 lakh crore.

The session's 1.1% rise in sensex came despite FII selling. Provisional data showed while net FII selling was Rs 762 crore, domestic funds showed a net inflow of Rs 435 crore. Institutional dealers said for the market to sustain at the current levels, it was important that foreign funds continue to infuse money into the Indian market.

In Friday's session, L&T, up 4.7% at Rs 1,302 was the top sensex gainer. Among the other gainers were ICICI Bank, up 4.5% at Rs 703 and Reliance, up 3.1% at Rs 2,183. Among the sensex losers were Sterlite, down 4.3% at Rs 508 and M&M, down 3.6% at Rs 630.

The small cap and the mid-cap remained in the forefront for a third straight day with their respective indices settling higher by 3.19% and 1.75% over last close. The market breadth remained strongly bullish with 2,139 gainers against 595 losers on the BSE.

The business volume dropped sharply to Rs 7,130.73 crore from Rs 7,996.10 crore on Thursday. Reliance Capital on Friday recorded the highest turnover of Rs 308.15 crore followed by Satyam Computer (Rs 292.01 crore).

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