Home Economy Bulls have it for fourth straight week

Bulls have it for fourth straight week

By IANS,

Mumbai : Bulls, backed by strong global bourses, continued to have an upper hand at the Indian equities markets for the fourth consecutive trading week ending Thursday, with a key index gaining about 3 percent from its previous weekly close.

Markets remained closed Friday on account of Ram Navami.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended Thursday at 10,348.83 points, with a gain of 300.34 points, or 2.99 percent, over the previous week’s close of 10,048.49 points.

Similarly, the S&P CNX Nifty of the National Stock Exchange (NSE) gained 3.3 percent from its last close to end at 3,211.05 points.

The Sensex hit an intra-week high of 10,431 points and a low of 9,521, while the Nifty hit an intra-week high of 3,228.7 points and low of 2,962.

The BSE midcap index ended 6.52 percent higher than its previous weekly close, while the BSE smallcap index was up 6.14 percent.

“This weeks’s rally has been quite healthy and we are now about 30 percent up from the lowest level but one needs to be cautious and not get carried away,” said Jagannadham Thunguntula, equity head at SMC Capitals.

“Whenever markets recover, people tend to enter in a big way thinking that the uptrend has begun, but that is not the case always,” Thunguntula added.

Markets started the week on a negative note aping their global peers, with the Sensex falling 480.35 points or 4.78 percent at 9,568.14 points.

The Nifty did no better and lost 4.2 percent from its last close to shut shop at 2,978.15 points.

Bulls made a comeback of sorts Tuesday with the Sensex gaining 1.47 percent or 140.36 points from Monday’s close to close at 9,708.50 points.

Similarly, the Nifty gained 1.44 percent over its last close to end trade at 3,020.95 points.

Wednesday saw Indian equities markets climb higher as investors bought lower valued realty, IT and oil and gas stocks.

Sensex rose 193.49 points or 1.99 percent to close at 9,901.99 points, while the Nifty gained 1.47 percent to end trade at 3,065.45 points.

Thursday was another good day for the bulls as the Sensex soared 4.51 percent.

Throughout the week, global bourses acted as a prop for its Indian peers as government heads across the world converged at the G20 summit in London to take significant steps to boost demand.

Data with market watchdog Securities and Exchange Board of India (SEBI) for the week ending Thursday showed foreign funds were net sellers, shedding scrips worth $255.8 million.

“This might not be a breakout, one needs to be cautious,” said Thunguntula.