Weekly review: Sensex snaps 3-week losing streak, up 334 points
Zee Media Bureau
Mumbai: The BSE benchmark Sensex snapped 3-week losing streak by gaining 334 points as investors cheered the interim budget proposals coupled with Finance Minister P Chidambaram's announcement that the fiscal deficit will be contained at 4.6 percent of the GDP for the fiscal year ending March 31, 2014.
Buoyant global cues after the US manufacturing activity, which hit its highest in nearly four years, also boosted investor sentiment in the domestic market. Positive comments by IMF about India's growth outlook also aided buying.
Fresh capital inflows into equity market also aided the firm trend as investors infused Rs 2,046.61 crore during the week, including the provisional figure of February 21, as per data issued by Sebi.
The Sensex resumed at 20,438.87 and shot up further to a high of 20,750.52 before settling the week at 20,700.75, showing a gain of 333.93 points or 1.64 percent from its last weekend's level.
The NSE 50-share Nifty also rose by 107.10 points or 1.77 percent to end at 6,155.45.
FM said the fiscal deficit for the ongoing financial year will be contained at 4.6 percent, current account gap will be capped at USD 45 billion and net borrowing for 2014-15 would be lower than FY'14 revised estimates.
On GDP growth, he further commented that the economy is more stable than what it was two years ago following several steps taken by the government and that the growth will be higher in the second half of the fiscal.
Excise duty cuts in sectors such as auto and capital goods also led to renewed buying, said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
Small-cap and mid-cap shares also firmed up good demand from retail investors as its indices rose by 1.81 percent and 1.75 percent, respectively.
In last three weeks, the Sensex had plunged by 766.74 points or 3.63 percent; while CNX Nifty fell by 218.40 points or 3.48 percent.
Asian stocks closed higher after China's new credit increased to a record in January, boosting optimism the world's second-largest economy can maintain its growth momentum.
Banking stocks lead the upsurge on rising hopes that improving economic growth would boost lending business, traders said.
Twenty scrips out of the 30-share Sensex pack ended higher, while 10 scrips finished lower.
Major gainers were Axis bank (7.89 percent), Tata Power (6.57 percent), Larsen (5.90 percent), Dr Reddy's Lab (5.72 percent), ICICI Bank (3.68 percent), HDFC (3.46 percent), M&M (3.26 percent), Infosys (2.91 percent) and Tata Motors (2.01 percent).
However, Bharti Airtel dipped by 5.37 percent, Coal India 3.51 percent, Hindalco 2.40 percent, SSLT 2.11 percent, RIL 1.42 percent, Cipla 1.29 percent and HUL 1.12 percent.
Among the S&P BSE sectoral indices, CG rose by 4.66 percent followed by Bankex 3.36 percent, Power 2.83 percent, IT 2.19 percent, HC 2.14 percent and Auto 1.67 percent.
Total turnover at BSE and NSE was Rs 8,661.27 crore and Rs 42,435.24 crore, respectively, as against the last weekend's level of Rs 8,654.30 crore and Rs 47,461.93 crore.