Sensex gains 5.5% over the week

Written by Agencies | Mumbai, December 29: | Updated: Dec 29 2007, 19:18pm hrs
The stock markets bounced back and ended 5.5 per cent higher in the week under review on the back of hectic short-covering as well as a healthy rollover in January series of derivatives.

After a sharp downward correction of nearly 4.5 per cent in the preceding week, the Bombay Stock Exchange (BSE) benchmark Sensex staged a strong recovery as operators and Foreign Institutional Investors (FIIs) rolled over and also covered short positions as December contract of the Futures and Options (F&O) ended on Thursday.

The BSE barometer ended the week at 20,206.95, a net rise of 1,044.38 points over last weekend's close of 19,162.57.

The broad-based S&P CNX Nifty of the National Stock Exchange (NSE) also flared up by 313.20 points or 5.43 per cent to close the week at 6,079.70 from previous weekend's close of 5,766.50.

The market breadth remained strong throughout on the back of brisk activity in the Mid-cap and the Small-cap segments.

The Sensex registered the biggest 692-point jump in a month on Monday on across the board buying by investors due to receding fears about the US economic slowdown as well as any mid-term elections in the country.

The BJP's stunning victory in Gujarat Assembly elections helped calm fears of early polls at the country.

Analysts, however, anticipated range-bound trade in the week ahead as the market might consolidate at the current levels before taking any direction.

The market will witness some unwinding of positions if global cues are weak.