Riding high on hectic buying by foreign funds across the sectors, the benchmark indices, Sensex and Nifty, posted this year’s best weekly gains as of September 17.
The gains were recorded despite RBI’s hiking its lending (repo) and borrowing (reverse repo) rates on Thursday to tame inflation, by curbing consumer spending.
The Bombay Stock Exchange 30-share barometer notched up 795.09 points or 4.23 per cent to settle at 32-month high of 19.594.75 on Friday, while the 50-issue Nifty of National Stock Exchange spurted by 244.90 points or 4.34 per cent to 5,884.95.
In a straight three-week of rally, the Sensex has surged by 1,606.34 points or 8.92 per cent.
Foreign Institutional Investors (FIIs), key drivers of the current rally, picked up shares worth nearly Rs 9,382 crore this week, including the provisional figure for Friday.
Heavy buying was seen in banking, realty and consumer durable stocks despite RBI’s hike in key interest rates, which were higher than the market expectations.
The RBI’s 25 basis points hike in repo rates and 50 basis points hike in reverse repo rates could not hamper the ongoing bullish trend. The hike is widely believed to have signalled a pause in the current round of tightening of monetary policy that has b een on over the past few months.
The market ended with gains on four out of five trading sessions this week. — PTI
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