Sensex logs seventh consecutive weekly rise

The Sensex rose 0.8 per cent on Friday to record its seventh straight weekly rise, its best run in nearly two years, bolstered by strong foreign fund inflows amid growing concerns that the market has run up too fast in a short span of time.

The benchmark index is up 18 per cent this year, mainly on buying by foreign portfolio investors who have pumped in $4.4 billion so far this year, after pulling out $500 million in 2011.

Top lenders such as State Bank of India and ICICI Bank were among the top gainers in the day’s trading, fuelled by an improved credit demand outlook, amid expectations of interest rate cuts by the central bank. Power equipment maker Bharat Heavy Electricals Ltd closed 6.7 per cent higher at Rs 303.55, after rising as much as 14.3 per cent to its highest level in three months, as investors bet on a rise in orders this year.

State-run NTPC Ltd plans to award $3.25 billion of equipment orders by March-end, after a ruling by the Supreme Court settled a case with a bidder in favour of the country’s top power producer, its chairman said yesterday.

The 30-share BSE index closed up 0.75 per cent, or 135.36 points, at 18,289.35, its best close in more than six months. Nineteen of its components ended in the positive territory. The broader 50-share NSE index ended up 0.77 per cent at 5,564.30 points. In the broader market, 803 losers were slightly ahead of 671 gainers on a relatively strong volume of about 1.4 billion shares.