It is an exceptional trading week as indices jumped by more
than one per cent and closed to new record high level. The benchmarking indices
- Sensex, Nifty - hit new highs of 28,693 and 8588 respectively, during the
week under review following sustained FII inflows and falling crude prices.Bringing respite to markets and the government, the global
crude oil prices fell to the lowest level since August 2010, at $72/barrel.
India import about 80 per cent of its requirements, thus fall in crude rates
help the country to reduce CAD and subsequently the fiscal deficit.
This would further enhance the chances for the Reserve Bank
to brought down the rates in its next review slated on December 2. There is lot
of pressure on the banking regulator to cut the interest rate for quite some time
from industry and trade and even in the rencent the Finance Minister also
joined the chorus for rate cut.
Speculating on the rate cut the market discounted as the
interest influenced shares like realty, banking and auto are in demand while
IT, metal and power stock supported the market with good buying support.
BSE Sensex gained over 2,500 points in the six consecutive
weeks, while hit the life-time high of 28,822 in the just concluded week.
Interestingly, the reported a historic milestone of market
capitalisation Rs 100 lakh crore-mark on Friday for the first time. It took 140
years for India and BSE to reach this milestone marking 10 times increase of
investor wealth in about a decade’s time.Besides rate cut, continuous flow of capital is another
factor for the spurt in the stock markets also the FIIs and FPIs are turning
net buyers on the bourses week after the week.
Major gainers from the sensex pack were Hindalco (8.59%),
M&M (6.20%), Tata Steel (6.07%), Tata Power (5.56%), SBI (5.38%), Infosys
(5.14%), HUL (4.31%), Hero MotoCorp (3.77%), HDFC Bank (2.67%), Gail India
(2.56%), HDFC (2.34%), Dr Reddy's Lab (2.04%) Coal India (2.20%) and Wipro
(2.16%).
