Relief rally lifts Sensex by 9% at weekend

Written by Agencies | Mumbai, March 29: | Updated: Mar 29 2008, 17:53pm hrs
The long bear phase seems to have ended as the stock markets witnessed an impressive relief rally lifting the benchmark Sensex by 9.0 per cent in the week under review amid a host of negative factors.

Both the key indices, Sensex and Nifty, registered their second highest point-wise gains in a week on the back of hectic short covering as the derivatives contract concluded on March 27. Foreign Institutional Investors (FIIs) too were net buyers in the Cash during the week.

The buying spree was so strong on March 25 that the Bombay Stock Exchange barometer logged its second biggest gain of 928.09 points.

Bourses drew support from reports of a surprise increase in sales of US pre-owned housing data as well as news that JP Morgan raised the open offer for the ailing US investment bank Bear Stearns to USD 10 per share from its earlier offer of USD 2 per share.

The market, however, were under pressure during mid-week due to weak global cues arising out of lingering fears about the US credit crisis and poor US economic data.

The rising inflation, which remained well above the 5.0 per cent caution level of the Reserve Bank also caused concerns among investors. The inflation touched 13-month high of 6.68 per cent for the week ended March 15.

At the weekend March 29, the Bombay Stock Exchange 30-share Sensex gyrated wildly in a range of 16,452.08 and 15,056.09 before ending the week at 16,371.29, a sharp rise of 1,376.46 points or 9.18 per cent over previous weekend.