Markets continue upward march; Sensex soars 100 points
Mumbai: Markets extended gains for the second consecutive week on hopes of further economic reforms and above-average monsoon coupled with fresh capital inflows from foreign funds into Indian equities.
Shares of FMCG, healthcare and Auto sectors firmed up on good buying enquiries.
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 S&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 percent, over the last week.
The key BSE barometer has gained 721.58 points, or 3.84 percent, in the last two weeks.
The NSE 50-share Nifty index also firmed up by 25.70 points, or 0.44 percent, to conclude at 5,867.90. The NSE benchmark has hardened by 200.25 points, or 3.53 percent, 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 rupee's slide against the dollar, draft norms on banks' exposure to corporates with unhedged forex and weak global cues. The Indian currency again breached the 60-mark against the dollar on July 3.