Markets continue upward march,Sensex soars 100 points

Energy stocks,led by heavyweight Reliance Industries,continued their upward march after the Government last week agreed to hike natural gas prices,brokers said.

The Samp;P BSE Sensex resumed slightly lower at 19,352.48 and dropped further to 19,147.31 on profit booking. But the 30- share index recovered quickly and hit a one-month high of 19,640.27 before end at 19,495.82,showing a gain of 100.01 points,of 0.52 per cent,over the last week.

The key BSE barometer has gained 721.58 points,or 3.84 per cent,in the last two weeks.

The NSE 50-share Nifty index also firmed up by 25.70 points,or 0.44 per cent,to conclude at 5,867.90. The NSE benchmark has hardened by 200.25 points,or 3.53 per cent,in the last two weeks.

The sentiment got a boost after Foreign Institutional Investors FIIs turned net buyer and bought shares worth Rs 1,024.70 crore during the week under review,including the provisional figure of July 5.

Banking shares saw selling in the backdrop of 26 private and pubic sector entities applying to RBI for bank licences,heightening chances of competition in the sector.

Sensex tumbled 286 points on Wednesday following all-round selling,triggered by the rupee8217;s slide against the dollar,draft norms on banks8217; exposure to corporates with unhedged forex and weak global cues. The Indian currency again breached the 60-mark against the dollar on July 3.

Weak world stock markets,worries over China8217;s growth,growing crisis in Egypt and fears over political instability in Portugal,pushed up crude oil prices to USD 105 a barrel.

Concerns over the rising oil prices that may widen the current account deficit CAD,impacted negatively as it may prevent RBI from cutting interest rates later this month.

However,monsoon rains were 4 per cent above average in the current week boosted the market sentiment.

Brokers said the market remained firm as heavyweights RIL surged on heavy FII buying and Hindustan Unilever Ltd HUL climbed to record high after its Anglo-Dutch parent Unilever Plc increased stake in the Indian firm. ITC rose after hiking prices for its cigarette brand.

18 scrips out of the Sensex pack ended higher while 12 others finished lower.

Major gainers from Sensex pack were ITC 5.46 per cent followed by Tata Motors 5.24 per cent,HUL 4.12 per cent,Gail India 4.06 per cent,Jindal Steel 3.04 per cent,Sun Pharma 2.60 per cent and BHEL 2.41 per cent,Reliance Ind 2.13 per cent and Cipla 1.95 per cent.

However,ONGC dropped by 4.44 per cent,Tata Steel 3.29 per cent,SBI 3.01 per cent,HDFC 2.64 per cent,Bajaj Auto 2.33 per cent,Coal India 1.93 per cent,Icici Bank 1.74 per cent and Infosys 1.56 per cent.

Among the major indices,Samp;P BSE-FMCG rose by 6.01 per cent followed by Samp;P BSE-HC 2.69 per cent and Samp;P BSE-Auto 0.96 per cent,while Samp;P BSE-PSU dropped by 2.20 per cent,Samp;P BSE-Bankex 1.66 per cent and Samp;P BSE-Metal 1.37 per cent.

The total turnover at BSE and NSE was Rs 8,928.19 crore and Rs 49,278.63 crore,respectively as against the last weekend8217;s level of Rs 8,701.01 crore and Rs 60,801.28 crore.

In one of the weakest weekly string of downslide,the Indian rupee today completed its 9th week of losing string,tumbling by 83 paise to end at 60.22 against the Greenback on sustained dollar demand from importers and some banks amid firm dollar overseas,despite capital inflows and firm local equities.

At the Interbank Foreign Exchange Forex market,the domestic unit resumed lower at 59.46 a dollar from last weekend8217;s close of 59.39 but immediately recovered to a high of 58.9650 on initial dollar selling by exporters and also strong rally in local equities.

Later,it reeled under pressure on heavy dollar demand from importers,mainly oil refiners,and some banks on behalf of their clients to a low of 60.59 before settling the week at 60.22,showing a fall of 83 paise,or 1.40 per cent.

In straight nine weeks,it had tanked by 628 paise or 11.64 per cent.

Attributing the rupee fall to dollar demand 8220;by the local industry to repay their debt liabilities8221;,Abhishek Goenka,Founder and CEO,India Forex Advisors said the currency could find support as government plans to unveil reform measures.

In the last two days of the preceding week,rupee had spurted by 133 paise or 2.19 per cent amid signs of capital inflows and moderation in March quarter Current Account Deficit CAD.

Finance Minister P Chidambaram Monday in an interview to PTI said,8221;sentiment will turn in favour8221; of the rupee as government is 8220;committed to containing the fiscal deficit8221; within target and is addressing how to finance CAD.