Riding high on the back of frantic buying by foreign funds,the benchmark Sensex posted gains for the fifth consecutive week and settled higher by almost 371 points at more than three-month high of 17,604.96.
Domestic factors like buyback of shares by top heavyweight RIL from February 1,good Q3 earnings by the country’s largest private sector lender,ICICI Bank,and the government’s move to infuse Rs 7,900 crore capital in state- owned SBI,also heightened the market sentiment.
Hopes of cut in the key interest rates in near future by the RBI after higher manufacturing data and lower food inflation,too,further improved the outlook.
As a result,interest rate sensitive stocks from realty,auto and banking segments were in the limelight. Auto stocks also got support after the rise in sales in January.
Buying was seen mostly across-the-field as 11 out of 13 sectoral indices closed in the green between 4.77 per cent and 1.04 per cent. Only BSE-CD and BSE-CG finished in the red with a fall of 2.80 pct and 0.97 pct respectively.
The main market driver,Foreign Institutional Investors (FIIs),picked up shares worth over Rs 5,850 crore in the week,including provisional data of February 3 while infusing a total Rs 15,230.30 crore in the current calender year till February 2,which mainly kept the market tempo upbeat.
The Bombay Stock Exchange 30-share gauge resumed lower and closed with losses on the first day of the week. It bounced back from the second day and remained in positive terrain throughout the week to settle at 17,604.96,showing a net rise of 370.98 points or 2.15 per cent.