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Benchmark indices ended firm today, extending gains to a fourth straight week, as traders and investors covered their short positions ahead of the weekend and also because of strong global markets. The BSE Sensex rose up 143 points or 0.7 per cent at 20,082, its highest closing level since January 28. The NSE Nifty closed at 6,094.75, up 44 points or 0.7 per cent from its previous close. In the last one week, both the Sensex and the Nifty have risen by 2.5 per cent.
Domestic indices, which were trading tentatively till noon, picked up steam soon aided by strong cues from global markets. Analysts said the industrial production data, which came in at a better-than-expected 2.5 per cent, did little to boost the market.
Auto stocks were the biggest gainers during the day with Maruti rising 3.9 per cent due to further weakness in the yen. Tata Motors gained 2.9 per cent and Mahindra & Mahindra rose 2.3 per cent. The BSE Auto index was the best performing one, gaining 2.3 per cent.
"The gain in auto stocks was mainly due to short-covering as these stocks had been in the oversold region for quite some time. People had hardly participated in these stocks," said Shrikant S Chouhan, senior vice-president, research, Kotak Securities. The BSE Auto index declined about 13 per cent in the January-March quarter of this year on the back of poor sales growth. Since April 1, however, it has regained and risen about 10 per cent.
Global markets were trading higher, with Japan's Nikkei hitting a five-and-a-half year high as the yen depreciated against the dollar and crossed the 100-yen mark. The Hong Kong market index, Hang Seng, hit a three-month high despite weak Chinese data.
Global stock markets have risen sharply over the past one month mainly because of aggressive monetary policy easing by the Japanese central bank. Improvement in US economic data also boosted sentiment.
At home, foreign institutional investor flows continue to drive the market as this category bought shares worth Rs 544 crore in the net. Domestic institutional investors were net sellers for an equal amount at Rs 502 crore. On the BSE, retail investors were net sellers at Rs 28 crore.
Inflation numbers are to be announced next week. The consumer price index, which was 10.4 per cent in March, is expected to moderate to 9.75 per cent, while the wholesale price index is expected to come down to 5.45 per cent from 5.96 per cent.
