Home » Business » Sensex snaps 3-week losing streak, gains 483 points

Sensex snaps 3-week losing streak, gains 483 points

Posted by on February 19, 2011 0 Comment

Mumbai, Feb 19 (IANS) A benchmark index for Indian equities markets rebounded nearly three percent in the weekly trade, snapping three consecutive weeks of losses, as inflation moderates and investors take fresh position ahead of the Union Budget.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended the week at 18,211.52 points, up 2.72 percent or 482.91 points from the previous week’s close of 17,728.61 points.

The benchmark Sensex had lost 1,279 points in the previous three weeks.

After three consecutive weeks of battering, the market opened this week on a bullish note surging 2.76 percent on the first trading day of the week. The benchmark indices closed in the positive in four out of the five trading sessions this week.

However, the indices slumped sharply Friday, the last trading day of the week, on profit booking after four days of rise.

The Sensex fell 1.6 percent to close at 18,564.08 points Friday.

The 50-scrip S&P CNX Nifty of the National Stock Exchange ended the week at 5,458.95 points, up 145.9 points or 2.80 percent from the previous week close of 5,313.05 points.

The markets rebounded smartly this week on the back of a host of positive factors, especially decline in inflation.

Food inflation declined to 11.05 percent for the week ended Feb 5 after it dropped nearly four percentage points to 13.07 percent in the previous week.

General inflation based on wholesale prices also moderated to 8.23 percent in January from 8.43 percent in the previous month.

The data should give some respite to the government which has been trying out various measures from monetary policy tightening to a slew of initiatives like selling essential food items by state-run agencies and a crackdown on hoarders.

Finance Minister Pranab Mukherjee said the prices should moderate further and food inflation would come down to single-digit soon and overall inflation will be around 7 percent by March end.

On the last trading day of the week, major gainers on the 30-scrip Sensex were: Hindustan Unilever, up 1.99 percent at Rs.279.25; Jindal Steel, up 1.55 percent at Rs.679.40; Cipla, up 0.57 percent at Rs.307.30; and BHEL, up 0.56 percent at Rs.2,093.15.

Losers on the benchmark index included Reliance Communications, down 6.8 percent at Rs.93.15; Reliance Infra, down 5.6 percent at Rs.605.60; Jaiprakash Associates, down 5.54 percent at Rs.85.25; and Tata Motors, down 3.91 percent at Rs.1,201.95.

Asian markets were mixed with the political tensions in the Middle East continuing to weigh down traders.

Hong Kong’s Hang Seng shut shop 1.26 percent higher at 23,595.24 points, while a benchmark of Chinese markets, Shanghai Composite index, shed 0.93 percent to close at 2,899.79 points.

The Japanese Nikkei ended flat at 10,842.8 points Friday.

Among the European markets, the UK’s FTSE 100 advanced ended 0.07 percent down at 6,082.99, the French CAC 40 rose 0.12 percent and the German DAX ended the week 0.29 percent higher.

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