By IANS,
Mumbai: Snapping a four-week losing streak, a benchmark index of the Indian equities markets gained 65 points this week as the hike in petrol price signalled that the government may take tough decisions to control the fiscal deficit and push forward other reforms.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended the week at 16,217.82 points, up 0.40 percent or 65.07 points from its previous week’s close at 16,152.75 points.
The Sensex started the week slightly higher at 16,187.66 points, but slumped below the psychological resistance level of the 16,000-point mark Wednesday, for the first time in almost four months.
The Sensex had lost over seven percent in the previous four weeks.
The Indian market was under pressure early this week due to a sharp drop in the value of rupee and negative cues from global markets.
The rupee slumped to a record low of 56.40 against a dollar this week. It suffered loss for the eighth consecutive week, the longest loosing streak since 2008 economic crisis.
However, the hike in petrol prices sent a positive signal to the investors leading to a rally in stock markets.
The benchmark Sensex zoomed 274 points Thursday, recouping the previous days losses. The index closed almost flat Friday, the last trading day of the week.
The wider 50-scrip S&P CNX Nifty of the National Stock Exchange also snapped the four-week losing streak. The Nifty closed this week at 4,920.40 points, up 0.59 percent from its previous week’s close. It ended flat Friday after rallying 1.77 percent in the previous day.
The government-run oil marketing companies Wednesday announced the sharpest ever increase in petrol price. In Delhi, petrol price was hiked by Rs.7.54 per litre.
The move is seen as a strong step forward towards fiscal consolidation.