Market regulator Securities and Exchange Board of India (Sebi)?s move to rein in Participatory Notes (PNs) to bring in more transparency in the capital markets was well received by the investor community across the board, helping the 30-share Sensex of the Bombay Stock Exchange (BSE) to strike a new life high of 19,275.34 points. The Sensex finally ended the day at a new closing high of 19,243.17 points gaining 472.28 points or 2.52%, posting one of the largest weekly gain of 1,683.19 points or 9.59%.
On the other hand, the broader S&P CNX Nifty of the National Stock Exchange (NSE) ended the day at 5,702.30 points gaining 133.35 points or 2.39%. The BSE Mid-cap and Small-cap indices also touched their life high of 7,935.99 points and 9,570.36 points respectively, reflecting the broader participation from side counters. At BSE, the market breadth remained positive with 1,737 stocks advancing when compared to 1,029 stocks that ended in the red. Among the Sensex pack, 23 stocks edged higher while 7 stocks ended the week on a negative note.
Gaurang Shah, chief manager, Geojit Financial Services, said, ?In the near-term we are comfortably bullish on the market with India Inc posting impressive second quarter results and inflation coming down to 3.07%. The Sebi?s move to rein in PNs is a very positive development for the market in the longer term. In the near-term, FII inflows may slow down, but when new entities start registering themselves with Sebi, we can witness more foreign money coming in probably from the beginning of 2008.