Sensex up for 4th consecutive week, ends 191 points higher
Mumbai: The benchmark S&P BSE Sensex continued to rule firm for the fourth consecutive week, surging 191 points to close above 20,000 level at more-than 1-1/2-month high of 20,149.85 on persistent buying.
The buying activity was mainly in FMCG, Refinery and IT sectors amid government's decision to liberalise foreign direct investment norms in some sectors coupled with good corporate results.
Good Q1 results from Infosys, TCS and HDFC Bank further boosted the market sentiment. Positive global cues and good rainfall also aided the firm trend.
At the beginning of the week, Sensex resumed lower at 19,926.10 and dropped further to a low of 19,649.58 on heavy selling as the Reserve Bank of India (RBI) took various steps to tighten liquidity in a bid to curb rupee volatility.
Meanwhile, inflation based on the wholesale price index accelerated to 4.86 percent in June from 4.7 percent in May, according to government data.
Banking stocks fell sharply as the RBI fined 22 banks for violating KYC/anti-money laundering norms. The Reserve Bank's latest measures would spark an interest rate increase, besides making it costlier for lenders and financial companies to raise short-term funds.
However, market recovered afterwards to a high of 20,256.60 before ending at 20,149.85, showing a rise of 191.38 points or 0.96 percent as Prime Minister Manmohan Singh promised to unleash more FDI reforms and push infrastructure initiatives to boost growth. It has gained 1,375.61 points or 7.33 percent in four weeks.