Market bounces back with sharp gains, up 750 pts during week

Mumbai, Sep 3: The benchmark BSE Sensex ended the week with sharp gains to regain the psychological 28,000-level to garner 749.86 points, while the broader Nifty reclaimed the key 8,800-mark.

Investors remained cautious in the fag-end of the week while still awaiting cues on US rate hikes. Besides, dismal quarterly GDP data and plunge in telecom stocks affected the sentiment. Reliance Jio launched aggressive 4G tariff plans this week, leading to anxiety among incumbent operators with regard to losing their market share.

The bulls mobilised and finally managed to dominate the sentiment that was lifted by the RBI report saying the country's growth outlook remained "brighter" and the economy may grow 7.6 per cent this year on account of better monsoon and boost in demand in the wake of 7th Pay Commission implementation.

The market gained further strength during the week with recovery in recently hammered shares and sharp jump in Auto sales data. Besides, the trading momentum was lifted by FIIs buying.

For the week, the Sensex opened higher at 27,827.26 and hovered in a range of 28,581.58 and 27,698.71 before ending at 28,532.11, showing a robust gain of 749.86 points, or 2.70 per cent. The market had lost 370.15 points during the previous two weeks.

The broader Nifty also surged by 237.10 points, or 2.77 per cent, to 8,809.65 after moving between a high of 8,824.10 and a low of 8,543.75. It had lost nearly 100 points in the previous two weeks.

Buying was led by auto, banking, capital goods, FMCG, consumer durables, PSUs, healthcare, oil&gas, power, metal and IT sectors substantially supported by midcap and smallcap company shares and debuting new IPOs, while, realty and tech counters witnessed profit-booking.

PTI