Metal indices set platform as Sensex gains in weekly show

Mumbai, May 27 (UNI) The concluding week saw the BSE Sensex sail a choppy sea and finally emerge stronger by ending the tumultous ride with a positive close of 143 points at 10,809.

The free fall of Bombay stock Exchange (BSE) Sensitive Index (Sensex) by 1,111 points mid-way put yesterday's close as victory for traders, since it was lower by just 129.26 points from the last Friday close.

Similarly, the National Stock Exchange's (NSE) S&P CNX Nifty Index closed at 3,209.60, up by 31.9 points or one per cent from Thursday's close. However, it was 37 points down compared to the previous week's close of 3,246.60.

Positive performance on the Sensex is attributed to last day's performance of steel majors like Tata Steel, Essar Steel and SAIL who gained on consolidation expectations in the steel industry, after Arcelor said it had agreed to buy Russia's Severstal to form the world's biggest steel company.

BSE metal index gained 2.5 per cent after staying in red for almost the whole week.

High net worth individuals and domestic funds were other important players that helped the Sensex stay afloat after it crashed in the Monday morning session.

Though the Sensex crashed with foreign institutional investors (FIIs) showing fleeting tendencies, the FII sales were barely US dollar 700 million during the period of sharp fall. However, the country has a strong pile up of foreign exchange reserves at around USD 162 billion, enough to take care of any fleeting eventuality.

The FIIs were big sellers throughout the week leading to total net selling of Rs 5,741 crores in the four trading sessions since Monday.

On Monday, in its worst intra-day stock market corrections, the BSE Sensex tumbled 1,111.70 points to a low of 9,826.91 while hitting a 10 per cent lower circuit. Following the steep fall, the trading on BSE had to be stopped for one hour from 1200 hrs to 1300 hrs to avoid further losses.

On Tuesday, volatile trading persisted at the Sensex, as markets swung by 673.72 points, touching an intra-day peak of 10,859.20 before closing at 10,822.78, an increase of 341 points over the previous close.

On Wednesday, volatility on Sensex continued as stocks witnessed a swing of 496 points and closed the day with a loss of 249.63 points at 10,573, from the previous close of 10,822.78.

On Thursday, after sailing in the choppy sea, the BSE Sensex managed to end the day in green at 10,666.32, with an increase of 94 points as compared to the previous close of 10,573 points.

Yesterday, the Sensex for the second consecutive day closed high at 10,809.35, up by 143 points as compared to the previous close of 10,666 points.

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