Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

Markets continue upward march, Sensex soars 100 points

Jul 06 2013, 16:02 IST
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Shares of FMCG, healthcare and Auto sectors firmed up on good buying enquiries. (AP) Shares of FMCG, healthcare and Auto sectors firmed up on good buying enquiries. (AP)
SummaryShares of FMCG, healthcare and Auto sectors firmed up on good buying enquiries.

Markets extended gains for the second consecutive week on hopes of further economic reforms and above-average monsoon coupled with fresh capital inflows from foreign funds into Indian equities.

Shares of FMCG, healthcare and Auto sectors firmed up on good buying enquiries.

Energy stocks, led by heavyweight Reliance Industries, continued their upward march after the Government last week agreed to hike natural gas prices, brokers said.

The S&P BSE Sensex resumed slightly lower at 19,352.48 and dropped further to 19,147.31 on profit booking. But the 30- share index recovered quickly and hit a one-month high of 19,640.27 before end at 19,495.82, showing a gain of 100.01 points, of 0.52 per cent, over the last week.

The key BSE barometer has gained 721.58 points, or 3.84 per cent, in the last two weeks.

The NSE 50-share Nifty index also firmed up by 25.70 points, or 0.44 per cent, to conclude at 5,867.90. The NSE benchmark has hardened by 200.25 points, or 3.53 per cent, in the last two weeks.

The sentiment got a boost after Foreign Institutional Investors (FIIs) turned net buyer and bought shares worth Rs 1,024.70 crore during the week under review, including the provisional figure of July 5.

Banking shares saw selling in the backdrop of 26 private and pubic sector entities applying to RBI for bank licences, heightening chances of competition in the sector.

Sensex tumbled 286 points on Wednesday following all-round selling, triggered by the rupee's slide against the dollar, draft norms on banks' exposure to corporates with unhedged forex and weak global cues. The Indian currency again breached the 60-mark against the dollar on July 3.

Weak world stock markets, worries over China's growth, growing crisis in Egypt and fears over political instability in Portugal, pushed up crude oil prices to USD 105 a barrel.

Concerns over the rising oil prices that may widen the current account deficit (CAD), impacted negatively as it may prevent RBI from cutting interest rates later this month.

However, monsoon rains were 4 per cent above average in the current week boosted the market sentiment.

Brokers said the market remained firm as heavyweights RIL surged on heavy FII buying and Hindustan Unilever Ltd (HUL) climbed to record high after its Anglo-Dutch parent Unilever Plc increased stake in the Indian firm. ITC rose after hiking prices for its cigarette brand.

18 scrips out of the Sensex pack ended higher while 12 others finished lower.

Major gainers from Sensex pack were ITC 5.46 per cent followed by

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