Sensex pulls back from its weekly low, gains 389 points at 10,765

Mumbai, Mar 11 (UNI) It was a volatile week for the equity markets as both the key indices of Bombay and National Stock Exchanges (BSE/NSE) went through highs and lows finally closing at their highest ever closing.

The Foreign Insitutional Investors (FIIs) selling by Rs 2,708 crore of equity in the Future&Options (F&O) markets on Wednesday scared investors leading to a massive correction on Thursday.

On Thursday 30 share Sensitive Index of BSE touched a low of 10,376 points following foreign fund outflow in the derivatives category of the equity markets.

However, Sensex bounced back by 389 points to close at its highest ever close of 10,765.16 with a weekly gain of 1.6 per cent or 169.73.

The National Stock Exchange 50 share S&P CNX Nifty index closed 1.11 per cent or 36.55 per cent up at 3183.90 points, its highest ever too.

However, Foreign Institutional Investors (FIIs) continued to be bullish on India with a total investment of Rs 1,404.70 crore in the last five trading sessions for which SEBI data is available.

But, on Thursday the FIIs were net sellers by Rs 287 crore which may depress market sentiments.

FIIs have dictated the rise in Indian stock markets over the last one year and total selling on Thursday was highest in a day this month at Rs 3,358 crore, after Rs 3,282 crore selling on the previous day. This could trigger another slide next week.

On Monday, Sensex closed at another all-time high of 10,735, gaining 1.32 per cent or 140 points backed by the FIIs buying.

On Tuesday, Sensex closed flat at 10,725 points, down by nine points as compared to its last close of 10,735.

Sentiments were down as the world and Asian markets closed weaker.

On Wednesday, Sensex fell sharply by 216 points to 10,508.85 following the outflow of foreign fund in future&options trading.

On Thursday, after dipping by 132 points during the early session due to the foreign fund outflow, the 20-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) made a dramatic recovery, adding 64 points, to close at 10,573 points. The FIIs selling another Rs 2,708 crore of equity in the Future&Options (F&O) markets had limited impact.

Yesterday, the stock markets came back strongly with the benchmark index zooming to a new high of 10,765, up by 191 points (1.81 pc), on the back of all round buying in the bluechip scrips.

Strong foreign fund buying on Wednesday and 8.3 per cent industrial growth data for January, triggered the bull run.

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