A week of consistency for Sensex!

Mumbai, July 1: With respect to recurrent volatility on the BSE sensitive index, the past week was an aberration, it saw a cosnsistent growth for a change, and the sensitive index grew by 208 points or 2.2 per cent from the previous weeks close.

The BSE sensitive index (Sensex) closed at 10,609 points on Friday.

Similarly, the S&P CNX Nifty for the week gained 2.7 per cent and closed on 3128.20 or 130 points up from the previous close.

Sensex was affected by various events, starting with the Fed interest rate hike, the week also saw the closure of derivatives contract for June 2006, and the less than average rainfall in June, all providing some volatility for concern.

However, the investors sentiments upsurged after the June 28 meeting of the US Federal Reserve. The Fed Chairman terminated concerns over another hike in the interest rates. Mr Ben Bernanke categorically said, ''there will be no further increase in the interest rates, apart from the 25 basis points hike in the month of June.'' Besides, Reliance Industries uplifted the sentiments of the investors by venturing into retail sector through a wholly owned new company Reliance Retail Ltd. RIL shares grew from Rs 981 to touch Rs 1010 and to finally close up at Rs 986 on the day it announced its foray into retail.

Also, the meterological department's prediction - more than 90-100 per cent of the long term average rainfall for the month of July and August - let the FMCG, Farms and Consumer Durables shares to rise, which reflected positively on the Sensex, ITC and HLL gained more than five per cent in the final close on Friday.

At a business conlcave in Mumbai, organised by Indian Business Journalist Association (IBJA) and Press Club Mumbai, on the'Emerging Trends In The Capital Market' experts from various financial institutions concurred, that, the current corrections would make the investors mature and allow them to make decisions only after understanding the true worth and value of the scrips.

It is necessary that the investors think long term and let their investments mature over a period of time, instead of following a herd mentality of buying and sellinmg when others do. Besides they should purchase stocks when the markets are down and not vice versa, they opined.

UNI