Sensex managed to end in positive terrain after two-week losing string, in view of good Q2 results from key corporates.
Despite high volatility the BSE benchmark Sensex managed to end in positive terrain after two-week losing string, in view of good Q2 results from key corporates, excellent response from Coal India IPO, sustained buying by foreign funds and fall in food inflation.
The Bombay Stock Exchange 30-share bellwether index opened higher at 20,160.55 and hovered in a wide range of 20,351.74 and 19,822.66 before ending the week at 20,165.86, showing a net gain of 40.81 points or 0.20 per cent.
Buying was seen mainly in healthcare, oil&gas, capital goods and PSU counters. However, selling pressure was noticed in metal, realty and consumer durable counters.
The initial public offer (IPO) of the state-run Coal India was over-subscribed 15.28 times and market participants expected the excess money, after getting return back, will get re-invested in equities.
Food inflation fell to 15.53 per cent for the week ended October 9 from 16.37 per cent in the previous week.
Volatility rose at the fag end of the week, as traders rolled over positions in the derivatives segment ahead of the expiry of the October 2010 contracts on 28 October 2010.
The initial batch of Q2 results announced so far have been good with the combined net profit of 307 companies rising 28.90 per cent on 19.80 per cent rise in sales in the quarter ended September 2010, over the quarter ended September 2009.
Foreign funds have made heavy purchases of Indian equities this year. Net equity inflow in 2010 now stands at a record USD 24.17 billion, above last year's USD 17.45 billion, as per data from the Securities & Exchange Board of India (Sebi).
Both the BSE_Mid-cap and small-cap indices outperformed the Sensex. The BSE Mid-Cap index advanced 1.37 per cent to 8,425.80 and the BSE Small-Cap index rose 0.88 per cent to 10,723.70.
The NSE 50-share Nifty also edged up by 3.40 points or 0.06 per cent to end the week at 6,066.05 from it last close.
However, among the 30-Sensex pack, 17 scrips declined while the rest gained.
India's largest IT exporter by sales Tata Consultancy Services (TCS) jumped 9.37 per cent to Rs 1,040.10 during the week and was the top gainer from the Sensex pack. The stock also struck a record high of Rs 1,049.90 on October 22, 2010, following announcement of forecast beating Q2 financials.
India's third largest IT exporter by sales Wipro lost 5.30 per cent as Q2 results fell short of market expectations.
Index heavyweight Reliance Industries (RIL) advanced 3.90 per cent to Rs 1,081.45.
India's largest non-ferrous metal firm by sales Sterlite Industries India slumped 5.80 per cent to Rs 168.20 and was the top loser from the Sensex pack.
Total turnover at BSE and NSE dropped to Rs 25,437.60 crore and Rs 76,715.49 crore respectively from the last weekend's level of Rs 28,740.35 crore and Rs 83,489.04 crore.