Sensex snaps 3-week losing spree, gains 1.49%

Sensex snaps 3-week losing spree, gains 1.49%

Mumbai: The Bombay Stock Exchange (BSE) benchmark Sensex snapped a three-week sluggish trend by gaining 234 points, or 1.49%, during the shortened week under review on firm global cues amid good buying support from domestic funds.

In a volatile week, all-round buying support, mainly towards the end of the week, on the back of easing of foreign investment norms amid favourable global trends despite rise in food inflation helped the recovery.

The news that the government has allowed Foreign Investment Promotion Board (FIPB) to approve foreign investment of up to Rs1,200 crore against the existing limit of Rs600 crore also helped to turn the corner.

The move will further liberalize norms and expedite foreign investment inflow into the country that might help markets to gain further momentum.

Rise in exports in January, for the third month in a row, by 11.5% too had a positive sentimental impact on the domestic bourses.

The 30-share Sensex regained 16,000-mark and ended the week at 16,152.59, a gain of 236.94 points, or 1.49%, over its last weekend’s close of 15,915.65.

The bellwether index had crashed by a whopping 1,638.65 points, or 9.33%, in the last three weeks due to all round profit-booking.

Asian as well as European stocks showed a positive trend during the week on expectations of a rescue plan for the debt-burdened Greece.

IT, consumer durable, realty, auto and banking counters were at the forefront on heavy demand.

IT stocks rose on a possible financial rescue plan for debt-ridden economy of Greece. Banking shares moved up following Reserve Bank of India’s announcement about new base rate to price credit more transparently from 1 April 2010.

The NSE 50-share index Nifty also recovered by 69.60 points, or 1.46%, to finish the week at 4,826.85.

Meanwhile, food inflation rose to 17.94% for the week ended 30 January from 17.56% a week ago, but it did not have a negative impact on the market.

Among the major indices, the BSE-IT shot up by 173.74 points, or 3.59%, the BSE-Consumer durable by 92.93 points, or 2.36%, the BSE-Realty by 64.35 points, or 1.94%, the BSE-Auto by 98.86 points, or 1.44%, and the BSE-Bankex by 1331.42 points, or 1.42%.

During the truncated week, as both the exchanges were closed on Friday on occasion of ‘Mahashivratri’, total trading volume on the BSE and NSE fell to Rs18,289.21 crore and Rs51,471.25 crore from Rs24,568.82 crore and Rs97,680.67 crore respectively, from the last weekend.