Mumbai: A host of positive factors helped the benchmark Sensex to complete one of the best winning rally in the five weeks since October 2007 and ended higher by another 455.03 points at a near 27-week high of 10,803.86 points during the shortened week.
The market was closed on 7 April and 10 April for Mahavir Jayanti and Good Friday, respectively.
In a stalwart five-week of advancing string, the Sensex recorded a gain of 2,478.04 points or 29.76%, the biggest gains in five week since between 20 August and 12 October 2007 when it had risen by 4,276.52 points.
Frenzied buying by foreign funds on expectations of an early recovery in the US economy, optimism about fresh monetary measures by the Reserve Bank to revive economic growth after inflation remained near-zero and also signs of improvement in the Indian economy, mainly helped the bulls to tighten their grip.
The Bombay Stock Exchange 30-share bellwether index gyrated in a range of 10,932.12 and 10,171.91 before ending the week at 10,803.86, a sharp rise of 4.40% over its last weekend’s close.
Similarly, the 50-issue Nifty of the National Stock Exchange also spurted by 131.00 points or 4.08% to finish the week at 3,342.05 from its last weekend’s close.
The market resumed the week on firm note on positive global advices as leaders of G-20 nations on 2 April agreed to pump in $1.1 trillion to support the International Monetary Fund (IMF) to strengthen the financial system to rescue the global economy facing the worst crisis since 1930s.
Improvement in the US data on manufacturing and housing, paved the way for other global markets to rally in the week, expecting early recovery in the economy.
On Wednesday, the Sensex saw a fall of nearly 363 points in initial trade but buying across the board helped the Sensex to notch handsome gains of over 207 points.
Hectic buying by Foreign Institutional Investors (FIIs) was one of the main reasons for the sustained current rally.
They pumped in Rs827.32 crore in the current week, including provisional figure of 9 April, taking the total to Rs1,758.42 crore since 1 April.
Inflation declined to a three-decade low of 0.26% in the fourth week of March from 0.31% in the previous week as the economy faces slowdown.
India’s industrial production (IIP) contracted by 1.2% in February, compared to the 9.5% growth a year ago, despite stimulus packages announced by the government.
Near-zero inflation and weak IIP data might give headroom to the RBI to cut key rates in its monetary policy slated for 21 April, a broker said.