Sensex scales Mount 10K

After over two-and-a-half months,the Sensex was back at the psychologically significant 10,000 mark. Last Friday the benchmark index registered a gain of 1,081.8 points,a surge of nearly 12 per cent over the previous weeks close. The markets rallied throughout the week and ended at 10,048.5 points on the last trading day. Buoyant global markets led by the US,and especially their plan to relieve banks balance sheets of up to 1 trillion of toxic assets announced earlier this week spurred the markets, says Jigar Lodaya,associate vice president-advisory,Sharekhan.

Foreign institutional investors FIIs invested Rs 1,519 crore in equities during the week. All sectors registered a growth of more than 5 per cent over the previous week8217;s close. The major gainers were banks and metals,which rose significantly by nearly 19 per cent and 16 per cent respectively. Commodities rallied sharply last week and that helped the metal index move up, points out Lodaya. The sectors that registered the smallest gains were information technology and realty,which rose 5.4 per cent and 5.1 per cent respectively.

WPI inflation declined marginally to 0.27 per cent for the week ended March 14 as compared to 0.44 per cent the week before. The price of crude oil jumped almost 4.6 per cent and is currently trading at 51.56 per barrel. Gold slipped nearly 2.2 per cent during the week and is currently trading at Rs 15,145 per 10 grams. The rupee is currently trading at 50.76 vis-à-vis the dollar. It depreciated 1.2 per cent during the week.

Market watchers expect the situation to stabilise by the third quarter of FY10 and risk appetite to return. According to Lodaya,The markets could touch 11,000 in the near term say in March itself. Thereafter,the markets could see some correction as well.