Shares flared up on smart rebound in rupee value coupled with steep hike in gas prices amid hopes US Fed will delay tapering monetary stimulus as the S&P BSE benchmark Sensex spurted 622 points to end at a three -week high of 19,395.81 points.
Hectic short-covering activity during the week in view of expiry of derivatives contract on June 27 also boosted the market,which snapped a three-week losing streak and posted handsome gains.
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In a major step forward in energy sector reforms,the Centre on Thursday approved near doubling of natural gas prices to USD 8.4 per mmBtu from April 1 next and okayed setting up of a coal regulator. Last week,it allowed power producers to pass through higher imported coal prices.
Recovery in the rupee value to 59.21 levels at the tail-end of the week,which touched a historic low of 60.76 against dollar on Wednesday,after current account deficit
(CAD) moderated “sharply” to 3.6 per cent of GDP in March quarter of 2012-13 fiscal from 6.7 per cent in December quarter,calmed nervous investors.
The Bombay Stock Exchange 30-share barometer resumed lower at 18,714.06 and dropped further to a two-month low of 18,467.16. However,it recovered after mid-week to hit a high of 19,432.94 before finishing at 19,395.81,showing a smart gain of 621.57 points,or 3.31 per cent. The key index had dropped by a massive 986.06 points,or 4.99 per cent,in the last three weeks.
The wide-based 50-share CNX Nifty of the NSE also rose by a healthy 174.55 points,or 3.08 per cent,to end at a three-week high of 5,842.20. It had dropped 318.30 points,or 5.32 per cent,in the last three weeks.
The possibility of maintaining its bonds purchasing programme by the US Federal Reserve for a longer period of time after US first-quarter GDP growth was revised down to 1.8 per cent from 2.4 per cent,boosted the market sentiment in the last two days of the week.
Buying was seen mostly across-the-board as 11 out of 13 sectoral indices closed in the green while only BSE-CD and BSE-FMCG ended in the red. Overall 25 out of 30 sensex-based scrips finished with gains while others settled with losses.
Petro-chem giant and among the top heavyweights,RIL,was the top gainer from the sensex pack with a rise of 8.56 per cent followed by GAIL India 7.80 per cent,ONGC 7.16 per cent,TCS 6.74 per cent,Hindalco 6.57 per cent,Jindal Steel 6.39 per cent,HDFC 6.31 per cent,Sun Pharma 6.17 per cent,Tata Power 5.45 per cent,HDFC Bank 5.16 per cent,Bajaj Auto 4.78 per cent,Dr Reddy’s Lab 4.31 per cent,Sterlite Ind 3.60 per cent,Infosys 3.06 per cent,Cipla 2.64 per cent,M&M 2.60 per
cent,ICICI Bank 2.53 per cent,Hero MotoCorp 2.30 per cent and BHEL 2.14 per cent.
However,Tata Motors declined by 1.99 per cent,SBI by 1.85 per cent,Maruti Suzuki by 1.09 per cent and HUL by 0.98 per cent.
From sectoral indices,S&P BSE-Oil&Gas flared up by 6.59 per cent,S&P BSE-IT by 4.06 per cent,S&P BSE-Teck 2.88 per cent,S&P BSE-Bankex 2.24 per cent,S&P BSE-HC by 2.17 per cent,S&P BSE-Power by 2.02 per cent and S&P BSE-Metal 1.96 per cent while S&P BSE-CD declined by 5.98 per cent and S&P BSE-FMCG by 0.44 per cent.
Second-line stocks underperformed the sensex on selling by cautious retail investors as the BSE-Smallcap and the BSE-Midcap indices closed down by 1.29 per cent and 1.21 per cent,respectively.
Meanwhile,Foreign Institutional Investors (FIIs) remained net sellers and they pulled out Rs 3,126.59 crore during the week,including provisional data of June 28.
The total turnover for the week on the BSE and the NSE was higher at Rs 8,701.01 crore and Rs 60,801.28 crore from Rs 7,884.26 crore and Rs 49,317.29 crore last week.