Sensex rallies 315.17 points during the week

Mumbai, Dec 30: The BSE Sensex advanced 315.17 points for the last week of 2006 which ended on Friday (December 29 2006) to close at 13,786.91, while the S&P CNX Nifty index of NSE rose 95.25 to settle at 3,966.40 during the same perioed, brokers said.

The market rallied during the week, as buying for index pivotals resumed, after a sharp fall on the back of a surprise hike in CRR announced on December 8 2006, after completion of trading. The market was closed on 25 December 2006 on account of Christmas.

The Sensex surged 236.60 points on December 26 2006, to settle at 13,708.34, on strong buying in IT scrips anticipating robust December quarter results.

The Sensex gained a further 151.35 points to end at 13,859.69, on December 27 2006, on account of short-covering ahead of the December futures contracts expiry (December 28 2006).

On December 28, 2006, the BSE Sensex slipped 13.35 points to 13,846.34, amid volatility at the close, due to expiry of December 2006 derivatives contracts.

The Sensex declined 59.43 points to 13,786.91, in late-trading on December 29 2006, under selling pressure.

The Nikkei 225 index finished just 0.01 per cent higher, at 17,225.83, on December 29,2006. That marked its highest close since early-May. The benchmark ended 2005 at 16,111.43.

The Reserve Bank of India permitted foreign investment up to 49 per cent in stock exchanges, paving the way for New York Stock Exchange (NYSE) to expand into Asia's best performer.

The Reserve Bank of India said foreigners could hold up to 49 per cent in depositories and clearing corporations.

Under the new rules, foreign direct investment will be limited at 26 per cent, while foreign portfolio investments will be capped at 23 per cent in all such entities, the central bank said. It, however, said portfolio investments will be allowed only through the secondary market. The stock exchange also plans to list shares on its own trading floor.

Media reports indicate the New York Stock Exchange was eager to pick up a stake in BSE.

The wholesale price index rose 5.43 per cent in 12 months to December 16, higher than the previous week's annual rise of 5.32 per cent due to an increase in manufactured product prices, data showed on Friday (December 29). The annual inflation rate was 4.62 per cent during the corresponding week of the previous year.

The market has ended calendar 2006 on a strong note, with the Sensex gaining 46.7 per cent to settle at 13,786.91, which is less than 200 points off its all-time closing high of 13,972.03 of December 7, 2006. It had struck an all-time high of 14,035.30 on December 6, 2006. The S&P CNX Nifty gained 39.8 per cent for the calendar year 2006. The market settled with gains for the fifth straight year. Banking, telecom, IT and cement shares hogged the limelight in 2006.

UNI