Sensex snaps 3-week losing streak, gains 830 points (Weekly Market Review)By IANS
Saturday, December 4, 2010
MUMBAI - A benchmark index of Indian equities markets gained 830 points this week, snapping three-week of losing streak, on the back of better than expected economic growth data and upbeat outlook.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) gained 4.34 percent or 830.32 points to close at 19,966.93 points. This is the first weekly gain in the last four weeks.
At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty also snapped three-week losing streak. Nifty ended the week at 5,992.8 points, up more than four percent.
After being battered by a series of scams and scandals, the Indian stock markets bounced back smartly this week on the back of an upbeat domestic economic outlook.
The Indian economy grew by 8.9 percent in the second quarter of 2010-11 beating the government’s own expectations of an 8.5 percent expansion this whole fiscal.
This growth rate has not only beaten market expectations, but much better than my own expectations. In the third quarter we are expecting to do better, said Chief Economic Advisor in the Finance Ministry Kaushik Basu.
The country’s gross domestic product (GDP) expanded 8.8 percent in the first quarters of the current fiscal.
Buoyed by the better than expected data in the first two quarters, Finance Minister Pranab Mukherjee has said that the annual GDP growth was likely to remain above 8.75 percent as against the budgetary estimate of 8.5 percent.
Markets have reacted very positively on the economic growth data. The country’s widely tracked indices - Sensex and Nifty - both rose nearly two percent Wednesday, a day after the GDP data was released.
The benchmark Sensex closed higher four out of the five trading sessions this week. The 30-share index Friday closed at 19,966.93 points — down 25.77 points or 0.13 percent after crossing psychologically important 20,000 points mark in the intra-day trade.
Sentiments at the market was negatively affected on the last trading day of the week after the Securities and Exchange Board of India (SEBI) barred four companies Murli Industries, Ackruti City, Welspun Corp Ltd, Brushman India and their respective promoters from trading for alleged price manipulation, price rigging ahead of fund raising plans of all these four companies.
Real estate stocks led decline Friday. Major losers on the Sensex were DLF, down 4.53 percent at Rs.306.55; Reliance Infra, down 4.29 percent at Rs.836.70; Jaiprakash Associates, down 4.27 percent at Rs.107.60, and Sterlite Industries, down 2.39 percent at Rs.165.65.