Sensex snaps 3-wk losing spree; hits 16K-mark with 234pts gain

The Bombay Stock Exchange benchmark Sensex snapped a three-week sluggish trend by gaining 234 points, or 1.49 per cent, during the shortened week under review on firm global cues amid good buying support from domestic funds.

In a volatile week, all-round buying support, mainly towards the end of the week, on the back of easing of foreign investment norms amid favourable global trends despite rise in food inflation helped the recovery.

The news that the government has allowed Foreign Investment Promotion Board (FIPB) to approve foreign investment of up to Rs 1,200 crore against the existing limit of Rs 600 crore also helped to turn the corner.

The move will further liberalise norms and expedite foreign investment inflow into the country that might help markets to gain further momentum.

Rise in exports in January, for the third month in a row, by 11.5 per cent too had a sentimental impact on the domestic bourses.

The 30-share Sensex regained 16,000-mark and ended the week at 16,152.59, a gain of 236.94 points or 1.49 per cent, over its last weekend's close of 15,915.65.

The bellwether index had crashed by a whopping 1,638.65 points or 9.33 per cent in the last three weeks due to all round profit-booking.