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| Market remains bullish with intra-trade corrections |
| BS Reporter / Mumbai Jun 13, 2009, 16:23 IST |
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The stock market remained bullish for the fourteenth straight week with the benchmark Sensex gaining about one per cent as the foreign investors' appetite for Indian equity showed impressive increase since May.
The Smallcap and the Midcap segments suffered a sharp setback after outperforming the key index for the last few weeks, which analysts, saw as a required correction for the good health of market.
Sectors such as realty, bank and consumer durables also was adjusted downward after a recent strong rally.
Withstanding resistance above the 15-K psychological mark, the Bombay Stock Exchange 30-share barometer ended the week under review higher at 15,237.94, adding 134.39 points or 0.89 per cent over its last weekend's close.
The National Stock Exchange's 50-share Nifty, however, ended week flat at 4,583.40 against its previous weekend's close of 4,586.90.
The market driver Foreign Institutional Investors (FIIs) have begun pouring their investments after the post-election political stability with the government's repeated hints about speedy economic reforms in key sectors amid strong signs of a recovery in Indian economy.
The capital inflows amounted to more than Rs 5,500 crore so far in June taking the total inflows till date in the calendar year to nearly Rs 27,000 crore.
After showing a negative growth rate in the last four months, the industrial production for April was up 1.4 per cent, a further indication that economy is on a recovery path.
The market is expected to remain upbeat ahead of the full budget to be presented early next month amid high expectations of reforms and decisions on PSU disinvestment programme.
The trading volume was relatively low during the week with a total turnover on BSE falling to Rs 39,216 crore from Rs 45,288 crore, and Rs 1,17,890 crore on the NSE from Rs 1,30,005 crore.
India's largest private sector company and the top heavyweight in the Sensex pack -- Reliance Industries -- soared 6.55 per cent over the week amid anticipation that the government may provide a seven-year tax holiday to natural gas producers as it is given to crude oil explorers in the Union Budget 2009-10.
A sharp surge in metal prices on the London Metal Exchange triggered a rally in metal stocks at home. As a result, the BSE metal index jumped by 4.49 per cent. The BSE IT index also spurted by 3.18 per cent as the dollar appreciated against the Indian currency.
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