Market marches ahead on rate cut hopes; Sensex rises 270 points

Market marches ahead on rate cut hopes; Sensex rises 270 points Mumbai: Despite tail-end selling in view of cautious approach by investors, both S&P BSE benchmark Sensex and NSE Nifty gained for the second straight week on persistent buying mainly in rate-sensitive sectors on hopes of a rate cut by the Reserve Bank of India next week.

Brokers said the sentiment was bolstered expectations that easing inflation and weak commodity prices might prompt the central bank to cut interest rate in an aggressive manner in its monetary policy meeting on May 3.

Persistent capital inflows from foreign funds also boosted the market sentiment. Foreign Institutional Investors (FIIs) have invested Rs 3,045.95 crore during the current week, including the provisional figure of April 26.

IT stocks like Wipro, Infosy and TCS saw selling on muted growth prospects. The infotech sector was particularly impacted because of the concerns on provisions of Immigration Bill tabled in the US Senate. The world's largest economy is the biggest market for Indian IT firms.

The 30-share Sensex resumed lower at 18,989.78 and dropped to 18,989.78, but recovered afterwards to hit a 6-week high of 19,434.85 before ending the week at 19,286.72, a net gain of 270.26 points, or 1.42 percent, from last weekend's level.

The BSE benchmark has gained a hefty 1,044.16 points, or 5.72 percent, in the last two weeks.

The NSE 50-share Nifty also rose by a healthy 88.35 points, or 1.53 percent, to finish the week at 5,871.45. The broader index has gained 342.90 points, or 6.20 percent, in the last two weeks.

The market had a truncated trading week as both BSE and NSE were closed on April 24 on account of "Mahavir Jayanti".

Buying was broad-based as 21 of the 30 Sensex scrips ended higher, while nine posted losses.

Major gainers were Maruti Suzuki (9.64 percent), Coal India (6.63 percent), HDFC (6.59 percent), Bharti Airtel (6.32 percent), Hero MotoCorp (6.28 percent), NTPC (6.10 percent), Hindalco Ind (5.71 percent), Bajaj Auto (5.66 percent), Gail India (5.36 percent), L&T (4.69 percent), Tata Motors (4.94 percent) and Dr Reddy's Lab (4.49 percent).

Among the key losers Wipro dropped by 10.45 percent followed by TCS (5.69 percent), HUL (3.69 percent), Infosys (3.62 percent) and M&M lost 1.24 percent.

Among the major indices, S&P BSE-Auto rose by 4.11 percent followed by S&P BSE-Capital Goods 3.16 percent, S&P BSE-Consumer Durable 2.48 percent, S&P BSE-Power 2.02 percent, S&P BSE-Bankex 2.04 percent, S&P BSE-HC 2.10 percent, S&P BSE-Metal 1.77 percent and S&P BSE-PSU gained 1.16 percent.

However, S&P BSE-IT dropped sharply by 4.83 percent and S&P BSE-Teck went down by 2.24 percent.

The total turnover at BSE and NSE rose to Rs 8,790.56 crore and Rs 48,692.75 crore, respectively from the last weekend's level of Rs 8,242.21 crore and Rs 46,997.76 crore previously.