Sensex up by 1.8 pc for week despite volatility
Mumbai, Sept 2: Despite the recurrent volatility, it was a week of positives on the sensex, which can be attributed to intense buying and short covering by foreign as well as domestic funds, in the select stocks of the midcap companies.
Except Thursday, sensex maintained its green position on other days, ending 1.8 per cent up for the week over previous weeks' close.
Similarly, National Stock Exchange S&P CNX Nifty also settled 1.5 per cent up from the previous weeks close.
All indices on Bombay Stock Exchange (BSE) fared well, FMCG was up 2.3 per cent for the week, health care was up 3 per cent, oil and gas was up 1.5 per cent for the week and metals sector too ended the week 2.5 per cent above the previous week's close.
Major factors that affected the price movement on the sensex were, the crude oil price which increased from the lower levels of US dollar 69 per barrel mark to US dollar 72 per barrel, did manage to bring volatility back to the market. Secondly, the nervousness due to the August derivatives contracts, which ended on August 31 made a serious dent on the index, especially on Thursday, as the investor sentiment turned bearish. It however, once again turned bullish on the last day of trading on account of successful closing of the derivatives.
Overall, the situation in Iran and the US Federal Banks employment data which was to be released at the end of the week, made the markets susceptible and cautious. Though the positive close on the last day and the Sensitive Index's week over week gain for the last five week, tells the story of India's strong economic fundamentals. A similar performance is expected in coming weeks too.