Mumbai: Key benchmarks Sensex and Nifty bounced by nearly 2.0% over the week even as global markets are expected to influence activity at home amid possibility of FIIs pullout at the year-end.
Technically, increasing build up in the Nifty positions as also in the futures and options indicate that the market is unlikely to continue with the upward movements.
Analysts feel that foreign institutional investors (FIIs) which made record investments so far in the current calendar year, may book profits in the next two months as it marks the end of their accounting year.
Over the week, the Bombay Stock Exchange 30-share index Sensex ended at 16,158.28, a net rise 262 points, or 1.65% over its last weekend’s close.
Similarly, the National Stock Exchange 50-share index Nifty gained 84.45 points, or 1.79%, at 4,796.15 at the weekend from the previous weekend’s close.
The dramatic bounce came after a two-week slide took the Sensex below 16,000 level to a ten-week intra-day low of 15,330.56 on 3 November, as the government rushed to the rescue of market, putting at rest speculation about withdrawal of financial packages given a year ago.
As per data available with market regulator Sebi, FIIs made investments of more than $69 billion so far in the current calendar year.
While government asserted that stimulus measures would continue and there would not be any curbs on capital inflows, the Planning Commission pitched for “aggressive” disinvestment, and said the proceeds from sale of government shares in PSUs should be utilized for new investment projects.
The government’s statements resulted in a sharp pullback rally on 5 November, leading to the Sensex registering the biggest single day gain in more than five months.
After plunging by nearly 6% on Monday, India’s largest private sector firm Reliance Industries rebounded to end the week higher by 1.32%.
Major gainers from the Sensex pack were Bharti Airtel (9.40%), Jaiprakash Associates (8.40%), ICICI Bank (7.49%), Tata Steel (5.96%), Sterlite Ind (4.21%), Mah & Mah (5.29%), Maruti Suzuki (5.01%) and Reliance Infra (3.20%).
Tata Power, however, dropped by 5.34%, ACC by 4.16%, Hindustan Unilever by 3.52% and Hero Honda by 2.29%.
The trading volume fell sharply during the week. The turnover on the BSE and the NSE was Rs22,255 crore and Rs67,284 crore compared to Rs27,550 crore and Rs95,136 crore respectively, during last week.