Markets end the week on a bullish note

Mumbai, Mar 24: The Sensitive Index ended the week on a bullish note, above the psychological barrier of 13,000 on the Bombay Stock Exchange (BSE) at 13, 285.93 from its previous week's close of 12, 430.40 points, a gain of 855.53 points, taking cues from northward-bound global bourses.

Similarly, the Nifty Index too recorded gains of nearly 255 points on the National Stock Exchange (NSE) to settle at 3,861.05 from its previous week's close of 3,608,55 points.

''The domestic bourses were back to their winning ways after posting losses for the last five consecutive weeks. The market managed to post gains, taking cues from a firm trend on bourses around the globe. Short covering in the derivatives segment also supported the rally,'' market analysts opined.

Prior to this, local bourses had suffered a sharp setback from their all-time highs struck in February, as a host of factors including lack of inflows at higher levels, a surprise CRR-hike, high valuations, rising inflation as well as interest rates kept investors nervous. Fears of an earnings slowdown in the coming quarters, weak global markets led by severe yen-carry-trade unwinding, the defeat of the Congress party in Uttarakhand and Punjab, weak global markets and profit-taking at the higher levels had also plagued the market lately, experts said.

Trading for the week on Monday started on an upbeat sentiment with the Sensex surging 214.59 points, to 12,644.99, as buying continued unabated during the session. Strong markets across the globe also boosted sentiment.

The BSE Sensex gained 60.95 points the following day, to settle at 12,705.94, amid high volatility. IT, banking and telecom shares were in demand helped by heavyweight Reliance Industries (RIL).

On Wednesday, the barometer index advanced 239.94 points triggered by heavy buying for shares from the banking, FMCG, IT and the metals segment. The 30-share BSE Sensex jumped 362.15 points, to settle at 13,308.03, as global markets rallied after the US Federal Reserve's policy-setting meeting that day left interest rates unchanged at 5.25 per cent.

On Friday, the Sensex settled 22.10 points lower, at 13,285.93, amid extreme volatility, as investors booked profits after four days of a fantastic rally.

Meanwhile, the Bank of Japan (BOJ) decided to keep interest rates unchanged at 0.5 per cent. BoJ Governor Toshihiko Fukui stuck to previous comments by saying the bank would adjust rates gradually on March 20.

On Mar 21, the US Federal Reserve's policy-setting meeting dropped an explicit reference to the possibility of hiking rates higher in its statement, sparking talk abut the next move of a cut.

The Fed left interest rates unchanged at 5.25 per cent. US interest-rate futures indicated a 48 per cent chance of a rate-cut by end -June 2007, compared to 24 per cent before the Fed's announcement.

India's wholesale price index rose 6.46 per cent in the 12 months to Mar 10, matching the previous week's annual increase, latest data showed. The figure was slightly lower than a forecast of 6.51 per cent in a poll of analysts. The annual inflation rate was 3.80 per cent during the corresponding week of the previous year.

The Securities&Exchange Board of India (SEBI) authorised all institutional investors, domestic and foreign, to sell short in the cash segment of the capital market. ''The time frame for this will be decided fairly quickly,'' Sebi Chairman M Damodaran said after the market regulator's board meeting on Thursday. Sebi held preliminary discussions with stock exchanges, who also have agreed, he added.

Though short selling will not be allowed, investors will have to fulfill their delivery obligation by borrowing shares through the securities lending and borrowing (SLB) mechanism. The SLB mechanism can be implemented through a clearing corporation or the custodian route, where investors can lend their shares to those who sold short. Of course, the lending investors could earn a fee for the shares lent.

In yet another major development, the Union Cabinet on Thursday decided to raise the foreign direct investment (FDI) ceiling in the telecom sector up to 74 per cent, from the prevailing 49 per cent.

The Cabinet clearance came after the Department of Telecom (DoT) and security agencies reached a consensus on allowing remote access with certain safeguards.

Reliance Industries (RIL) gained 5.81 per cent to Rs 1379.20, after it said it was exploring joint construction of an acrylic-monomer plant in India with US-based Rohm and Haas Co.

State-run Bharat Heavy Electricals (Bhel) surged 16.41 points to Rs 2279.50.

Tata Motors edged up 4.74 per cent, to Rs 788.

Car maker Maruti Udyog (MUL) rose 7.26 per cent, to Rs 837.

Ranbaxy surged 4.53 per cent to Rs 330.

Cigarette maker ITC moved 0.79 per cent higher to Rs 144.

Reliance Energy advanced 6.21 per cent to Rs 485, on reports that the company was pursuing tie-ups with US companies. The firm plans to get into the nuclear energy market. Apart from nuclear energy, the company had also chalked out aggressive growth plans for wind energy. Besides, REL has reportedly bagged a contract for developing the Trichy 'Dindigul National Highway four-laning project to be undertaken on a build-operate-transfer (BOT) basis worth Rs 576 crore.

Hero Honda rose 3.91 per cent to Rs 675.10.

Oil exploration major ONGC surged 10.6 per cent to Rs 843.25.

Term lending institution IFCI surged 26 per cent to Rs 31.

Five IPOs were listed during this week. On Mar 20, Astral Poly Technik, a manufacturer and provider of CPVC (Chlorinated Poly Vinyl Chloride) piping and plumbing systems, settled at Rs 104.55 on BSE, a discount of 9 per cent over the IPO price of Rs 115.

On Mar 19, shares of three companies got listed on the bourses. Abhishek Mills settled at Rs 91.15, a discount of 8.85 per cent over the IPO price of Rs 100, while Jagjanani Textiles settled at Rs 23.15, a discount of 7.4 per cent over the IPO price of Rs 25.

Lawreshwar Polymers settled at Rs 14, a discount of 12.5 per cent over the IPO price of Rs 16. AMD Metplast, however, settled at Rs 78.30, a slight premium of 4.4 per cent over the IPO price of Rs 75.

Indiabulls Real Estate settled at Rs 325.65, after touching a low of Rs 325.65 and a high of Rs 414.80 on BSE, after it was listed on the bourses yesterday. Indiabulls Real Estate (IBREL) was formed following the de-merger of the real estate business of Indiabulls Financial Services (IBFSL). The total equity capital of IBREL is Rs 35.93 crore, consisting of 17.96 crore shares of Rs 2 each.

UNI