Notwithstanding internal and external negative factors that weighed on the market,the BSE benchmark Sensex closed the week up by 23 points at 16,972.51 on selective buying mainly in capital goods,pharma,power and auto sectors.
The market resumed on a firm note with the Sensex crossing 17K-mark for the first time after six weeks to 17,109.95 on hopes of rate cut by the Reserve Bank.
However,the RBI in its monetary policy meeting on Monday kept the key interest rates and cash reserve ratio (CRR) unchanged pouring cold water on widespread expectations of at least 0.25 per cent cut in the interest rates.
As a results,Sensex tumbled by 244 points,or 1.44 per cent,on Monday but recovered on the next day,despite rating agency Fitch lowering India’s credit rating outlook to negative,after Prime Minister Manmohan Singh assured that his government is determined to take “tough” decisions to reverse the rising fiscal deficit,amid falling global oil prices.
The market mood was lifted after Finance Minister Pranab Mukherjee in New Delhi said the government is taking steps to improve inflow of foreign investment.
Moving towards forming a new government by Greece and Spanish debt sale meeting targets also helped the rally as also expectations that the US Fed might expand stimulus easures in a two-day FOMC meeting starting Tuesday. The
market remained firm for the next two days.
Sensex turned negative on the last day of the week on fall in the rupee value to a new record low of 57.31,adding investors’ woes as it will impact negatively on the import-based companies.
Finally,it settled the week up by a mere 22.68 points or 0.13 per cent at 16,972.51. It touched a low of 16,636.09.