Sensex up 473 points in ninth straight weekly rally

The Bombay Stock Exchange 30-share barometer extended its weekly rally to ninth straight week, gaining another 473 points but failed to sustain higher levels in the week under review.

This makes the longest weekly rally since July 24, 2006 with a rise of 42.65 per cent, one of the biggest weekly percentagewise gains in the BSE history.

After a long weekend, the market started with a big bang as the Sensex zoomed 731.50 points on Monday, taking the Sensex past 12K level for the first time since October 2008.

In the week to May 8, the Sensex hit the intra-trade high of 12,272.10 on Wednesday before ending the week at 11,876.43, a net rise of 473.18 points or 4.15 per cent over its previous weekend's close.

In the longest weekly winning streak, the BSE bellwether registered a net rise of 3,550.61 points or 42.65 per cent.

The market was consistently supported by strong global cues and continued capital inflows as well as encouraging built-up of derivatives positions in the opening week of May series amid concerns about fluid political situation in the country.

Brokers said the market also drew support from hopes of early recovery in domestic as also global economy.

According to other analysts, the volatility might remain for a few more days because of fears of political uncertainty after the general election results due on May 16.

SMC Global Vice-President Rajesh Jain said: "With election results round the corner, investors are shying from taking fresh positions. The rally has stretched for more than two months, a reaction is expected now. Smart investors are resorting to profit taking to stay away from uncertainty."

Meanwhile, the inflation rose to 0.70 per cent for the week ending April 25 from 0.57 per cent in the preceding weekend.

From the Sensex stocks, Hindalco jumped by 26.83 per cent, Sterlite Ind by 20.27 per cent, Tata Steel by 18.67 per cent, L&T by 12.65 per cent, Tata Motors by 10.75 per cent, REL Infra by 10.64 per cent, ICICI Bank by 8.97 per cent, Wipro by 7.41 per cent, Ranbaxy by 7.35 per cent, REL COM by 6.82 per cent and RIL by 5.23 per cent.

The BSE Small-cap and Mid-cap indices outperformed the sensex in the week, indicating fresh participation of retail investors and were up by 336.36 points or 8.54 per cent and 256.56 points or 7.30 per cent respectively.

The S&P CNX Defty firmed up by 137.05 points or 5.71 per cent to 2,538.90 from 2,401.85 and the CNX Nifty Junior also rose by 244.95 points or 4.64 per cent to 5,526.75 from 5,281.80 last weekend.