Mumbai, Dec 8: Touching twice over 20K level, the benchmark sensitive index at Bombay Stock Exchange (BSE) climbed 602 points, a gain of 3.11 per cent, to close at 19,966 in the week end, December 7 on global cues amid persisting volatility in Indian market.
The market witnessed a strong upward momentum on expectation that the US Federal Reserve will cut the Fed funds rate by atleast 25 basis points at its meeting early next week, the traders said.
Stocks rose across global markets on eased US recession worries after a plan announced by President George W Bush to stem US home foreclosures. BSE Sensex gained in four out of the five trading sessions in the week. Sensex crossed the 20K level twice on the last two days of the week but failed to sustain the gain as some heavyweight stocks shed their gains, traders pointed.
Similarly, the volatility was also observed in Nifty index at National Stock Exchange (NSE) as it hit an all-time high 6,042.10 and gained 211.55 points, 3.67 per cent up, before closing near to 6,000 level at 5974.30 by the end of the week.
BSE Small Cap index surged 816.25 points or 7.75 per cent to 11,342.27 in the week. BSE Mid Cap index rose 468.40 points or 5.48 per cent to 9,021.96 in the week. Both the indices outperformed the Sensex.
The Sensex rose 240.22 points or 1.24 per cent to 19,603.41 on Monday. Strong buying interest in some index pivotals including Reliance Industries boosted the bourses. IT pivotals, Wipro, TCS and Satyam Computer edged higher. Reliance Energy spurted. The market breadth was strong. Last week's sharp fall in global crude oil prices supported the rally on the bourses. The BSE Small-Cap and BSE Mid-Cap indices outperformed the Sensex.
The BSE Sensex lost 73.91 points or 0.38 per cent to 19,529.50 on Tuesday, December 4. The market edged lower led by fall in index heavyweights Reliance Industries and ICICI Bank. Select IT stocks weakened. Tata Steel soared. Metal, consumer goods and auto stocks were in demand.
The BSE Sensex rose 208.57 points or 1.07 per cent to 19,738.07 on Wednesday. After remaining range bound in afternoon trade, the market firmed up in late trade as European markets, which opened after Indian markets, started on a firm note. ICICI bank surged in late trade. Reliance Industries firmed up.
Banking, oil&gas and realty stocks were in demand. IT stocks edged lower. Buying continued in small-cap and mid-cap shares, which have been rising since the past few days. Market breadth was strong.
The BSE Sensex rose 57.80 points or 0.29 per cent to 19,795.87 on Thursday, 6 December. Though the market ended in the green, it came off higher level as index heavyweight Reliance Industries slipped. Volatility on the bourses was high. ICICI Bank edged higher. Cipla surged. Consumer durables stocks dwindled. Realty stocks were the star performers in today's trade. Market breadth was strong. European markets, which opened after Indian markets, were trading firm. Key Asian indices, except China, were in green.
The BSE Sensex rose 170.13 points or 0.86 per cent to 19,966 on Friday. Data showing slide in inflation helped the market end the choppy session on a firm note but fall in index heavyweight Reliance Industries capped the rise. Infosys Technologies and ICICI Bank spurted. IT, banking and realty stocks were in demand.
Market breadth moved between positive and negative. Out of 30, 16 stocks from the Sensex pack were in the red. European markets, which opened after Indian market, were firm in early trade.
Bajaj Auto shed 0.22 per cent to Rs 2,703.15 on reports it may take a majority stake in Austria's sports bike maker KTM Power Sports. In November 2007, Bajaj Auto had picked up a 14.5 per cent stake in KTM Power Sports for around Rs 300-350 crore from open market purchases.
Reliance Industries (RIL) declined 0.32 per cent to Rs 2,841.85 after the company said it has signed a memorandum of understanding with Gail (India) for joint co-operation in petro-chemicals. As per the memorandum of understanding (MoU), GAIL India and Reliance Industries (RIL) would explore opportunities for setting up petro-chemical complexes outside India in feedstock rich countries. GAIL and RIL will set up a special purpose vehicle (SPV) for setting up petro-chemical complexes abroad.
Auto major and India's largest commercial vehicle maker by sales Tata Motors rose 5.15 per cent to Rs 771.10. Its total sales slipped 4 per cent to 46,947 units in November 2007 over November 2006. India's largest carmaker by sales Maruti Suzuki India rose 2.95 per cent to Rs 1,042.25 after its sales rose 26.6 per cent to 69,699 units in November 2007 over November 2006.
Reliance Energy jumped 11.16 per cent to Rs 1,932.10. The company's board of directors at its meeting held on December 2, 2007 approved proposal to raise upto Rs 8,000 crore through a preferential offer at Rs 1,812 per share to promoters and institutions. Reliance Energy (REL) said the new equity capital infusion will substantially enhance the net worth, and further augment its borrowing capabilities, to enable greater participation in mega growth opportunities in high growth areas.
Meanwhile, Reliance Power, a 50 per cent owned subsidiary of REL reportedly received a Letter of Intent for setting up a 4,000 mega watt ultra mega power project in Andhra Pradesh. While, Reliance Communications rose 8.81 per cent to Rs 734.30 after the Department of Tele-communications (DoT) on Thursday, December 6, 2007 awarded a pan-India GSM licence to the company.
Among other gainers, ICICI Bank gained 5.51 per cent to Rs 1,247.50, Infosys was up 7.11 per cent to Rs 1,718.15, Larsen&Toubro gained 3.21 per cent to Rs 4,261.35, State Bank of India rose 5.93 per cent to Rs 2,436.60, HDFC gained 4.9 per cent to Rs 2,920.90 and DLF was up 7.15 per cent to Rs 1,011.35, led the front row in the Sensex pack.
The term-lending institution IFCI surged 6.71 per cent to Rs 100.95 on reports International Finance Corporation will pick up stake in the term lending institution. International Finance Corporation (IFC), the investment arm of World Bank, is likely to hold less than 20 per cent stake in IFCI. IFCI needs funds to meet its capital adequacy requirements.