The key indices pared the gains as global sentiments improved on fall of crude oil prices to a three months low and it is being expected that inflation would come down from its current high levels as good monsoon will improve the food production, brokers said. All together fall in crude oil prices, recovery in rainfall and buying by foreign institutional investors helped Sensex close above the crucial 15,000 mark. The BSE Mid-Cap index rose by 244.23 points or 4.33 per cent to 5,886.97 and the BSE Small-Cap index rose by 201.64 points or 2.89 per cent to 7,181.74. Banking, auto, realty and capital goods stocks supported the rally during the week.
BSE Bankex surged up by 9.9 per cent, Auto index gained 8.58 per cent, Realty index up by 5.9 per ceny and Capital Goods index moved up by 3.58 per cent.
Foreign institutional investors (FII) bought shares worth Rs 1,527.90 in the first few days of this month till August 7, 2008.
FIIs sold shares worth Rs 25,774.20 in the calendar year 2008. Mutual funds sold shares worth Rs 286.10 this month.
Crude oil prices declined sharply from a record high of USD 147.27 per barrel hit on July 11, 2008. Oil held near USD 118 a barrel on August 8, 2008. India imports 70 per cent of its crude requirement.
The key benchmark indices settled lower on Monday, August 4, 2008, after swinging wildly throughout the day. Global cues were mixed with negative bias. However buying momentum in small-cap and mid-cap stocks kept the market breadth strong. Selling pressure was seen in capital goods, banking and power stocks.
India's largest electric equipment maker Bharat Heavy Electricals rose by 1.52 per cent to Rs 1,783.25 in the week. Reports on August 7, 2008 said government has blamed the company for delaying projects causing acute shortage of electricity in various parts of the country.
Housing Development Finance Corporation, rose by 4.63 per cent to Rs 2,513.35.
Reports on August 7, 2008, said the company is in talks with GE Money to buy the latter's Indian home loan business.
Oil&Natural Gas Corporation gained by 6.74 per cent to Rs 1,064. Reports on August 6, 2008 said the company plans to scale up its gas production in Tripura and has revised the project cost to Rs 4,376 crore from Rs 1,817 crore.
HDFC Bank surged by 15.61 per cent to Rs 1,280.20, ICICI Bank up by 13.52 per cent to Rs 728.90, State Bank of India up by 1.44 per cent to Rs 1,521.85, Larsen&Toubro up by 5.26 per cent to Rs 2,834.05, Reliance Industries down by 2.14 per cent to Rs 2,250.45 and Satyam Computer Services up by 4.56 per cent to Rs 409.
Government's direct tax collections rose by an annual 46.9 per cent to Rs 71,648 crore in April-July 2008, the finance ministry said in a statement on August 8 2008.
Inflation based on the wholesale price index rose by 12.01 per cent in the week ended July 24, 2008, slightly above the previous week's 11.98 per cent, government data released on August 7, 2008 showed.