equities markets benchmark indices soared over 6 percent this
week, as hopes of end of monetary tightening cycle and easing
European debt crisis bolstered investors' sentiments.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange
(BSE) climbed 6.07 percent or 1,019.16 points, the biggest weekly
rally in over two months.
The Sensex closed 2.98 percent higher at 17,804.8 points Friday,
the last trading day of the week.
At the National Stock Exchange, the 50-scrip S&P CNX Nifty also
climbed over 6 percent in the weekly trade. The 50-scrip index
soared 3.05 percent to close at 5,360.7 points Friday.
Expectations of end to the monetary tightening cycle boosted
investors' sentiments on the Dalal Street this week. The Reserve
Bank of India in its second quarter review of the monetary policy
said it would not hike rates further if inflation started coming
down from December as it expected.
The RBI has hiked key policy rates 13 times since the beginning of
2010 to curb inflation. The aggressive monetary tightening has
made cost of capital expensive, hurting industrial growth and
companies' earnings and profitability.
There was a strong rally in the interest rate sensitive realty and
banking stocks towards the end of the week. The BSE realty index
surged 5.34 percent and the banking index jumped 3.73 percent.
ICICI Bank, the country's second largest lender, jumped over seven
percent to Rs.932.95 Friday. The largest lender, State Bank of
India rose 2.15 percent to Rs.1,907.
Other prominent Sensex gainers Friday included Hindalco, up 10.88
percent at Rs.142.20; Sterlite, up 8.8 percent at Rs.132.90; ICICI
Bank, up 7.01 percent at Rs.932.95; and Tata Steel, up 6.45
percent at Rs.480.60.
There were only three losers on the benchmark Sensex: Maruti
Suzuki, down 1.99 percent at Rs.1,128; Bharti Airtel, down 0.25
percent at Rs.391.85; and Bajaj Auto, down 0.11 percent at
The Indian stock markets rallied Friday after two days of holiday.
The markets were closed Wednesday, except for an hour-long muhurat
trading session, and Thursday on account of Diwali holidays.
Markets rallied across the world towards the end of this week
after the European leaders agreed on a plan to solve the debt
crisis in the region.
The Japanese Nikkei Friday closed 1.39 percent higher at 9,050.47
points, while Hong Kong's Hang Seng ended 1.68 percent up at
The Chinese Shanghai composite index ended 1.55 percent higher at
European markets registered good weekly gains, however closed
marginally in the red Friday. Britain's FTSE 100 closed 0.20
percent down at 5,702.24 points, the French CAC 40 closed 0.59
percent down at 3,348.63 points Friday.
However, the German DAX settled 0.13 percent higher at 6,346.19
points on the last trading day of the week.