Major record created, though stock markets volatile

Mumbai June 10: The hike in oil price, panic selling by investors, weak global markets, the highest ever fall in Nikkei and to cap it, the highest ever gain in a single day at sensex were some of the highlights of the week.

Experts feel, the Union governments' refusal to roll back the hike in oil prices has had its effect on the stocks of the oil and gas sector. ONGC which shares 90-92 per cent of the subsidy burden of various private oil refineries, suffered serious setback to its share prices during the week. Nevertheless, the the Oil and Gas indices manged to recover the losses and gained 8.62 per cent to close at 4680.79 points on Friday.

The week witnessed serious volatility and in the process managed to create various records. The BSE Sensex which opened the week in red and suffered huge losses on panic selling by investors, managed to create a record for itself by recovering 514 points to close on 9810.46 on Friday- the highest ever gain for a sigle day in the history of Sensex. The recovery was attributed to bargain buying and bottom hunting by the investors.

All the BSE indices closed in green on Friday.

Major scrips which gained on the index were led by Relinace Enery up by more than 14 per cent, Grasim Industries, up by 13.5 per cent, Reliance Indutries up 11.74 per cent, highest increase in a decade.

HDFC was up by 9.05 per cent and similarly, ITC, NTPC, BHEL and other index heavy weights grew between 7.0 to 9.0 per cent.

Besides, the experts feel, increase in Repo rates by RBI has had its impact on the scrips of the Banking sector. ICICI has increased the interest rates by 25 basis points for the retail and corporate lending.

Experts aver, the hike in interest rates will affect the rates for home loans too.

UNI