Taking a cue from the global markets,the domestic markets snapped their three-week losing streak on Friday and ended the week on a positive note with a 412-point rise. The 30-share benchmark index Sensex closed the week with a gain of 1.73 per cent,at 8,756.61 compared with 8,607 last Friday. Fridays 412-point rise was basically due to the stability in the global markets. The US markets have been on the rise for the last three consecutive days and the Asian markets too were up this morning. Therefore,it is the global momentum that pulled the domestic stock markets up, says Deepak Jasani,retail research (head),HDFC Securities. Several chiefs of US banks announced that their financial position has improved. Their pronouncements lifted the mood of the markets in the West,and that mood in turn got transmitted to the Indian markets.
Except for the consumer durable index,all other indices ended the week in positive territory. While metal and auto indices registered the maximum gains of 7.24 and 6.81 per cent respectively,healthcare and consumer durables indices were the laggards with returns of just 0.75 and -1.08 per cent respectively.
Two crucial numbers were released during the week: IIP data and inflation figures. The Index for Industrial Production for January fell 0.5 per cent year-on-year. Inflation,on the other hand,hit a seven-year low at 2.43 per cent for the week ending February 28. According to Jasani,Both these numbers are along expected lines. Inflation is expected to fall further.
On whether the markets will be able to sustain the gains,Jasani says: We expect the markets to gain more. Although they may not be runaway gains,there will be some more gains over the next week.