The market got off to a flying start on Monday on receding fears of recession in america following an optimistic assessment of the US economy by Fed chairman Bill Bernanke on August 26. The end of a standoff between the government and anti-corruption crusader Anna Hazare within the previous weekend also aided the positive sentiment. The BSE Sensex jumped nearly 600 points and there is no looking back from thereon.
The strong Q1 June 2011 GDP development data maintained the tempo on Tuesday; the Sensex jumped by another 260 points since the latest data showed that the economy expanded 7. 7% in Q1 June 2011 from the year earlier, helped by strong growth in the services sector. The production sector grew an annual 7. 2% in Q1 June 2011 and plantation output rose an annual 3. 9%, the data showed.
Neither the holidays bang in the center of the week nor the double-digit food inflation numbers were enough to split the momentum. The markets were shut on August 31 on account of Ramzan and September 1 because of Ganesh Chaturthi. And food inflation touched the double-digit mark after a space of over five months. It was at 10. 05% for the 7 days ended August 20, as onion, fruits, vegetables and protein-based items turned costly. The prices of onion soared by 57. 01% year-on-year, while that associated with potato rose by 13. 31% during the week under review.
Taking from where they'd left, the key benchmark indices logged gains for the third consecutive session on Friday as domestic bourses played a catch-up using their global peers to sign off what was the best week previously two years.
India's largest real estate developer by market capitalisation DLF leaped 18. 28% to Rs 208 to top the gainers list on the BSE on plans to market its holding in the joint venture company which is undertaking the DLF THIS Park, Noida project. Tata Steel gained by 15. 6% at Rs 488 publish its steep recent fall triggered by concerns the ongoing euro-zone debt turmoil will impact its European operations. And index heavyweight RIL recovered from the 52-week low of Rs 713. 55 touched on August 26 to progress 11. 9% to Rs 805 after announcing the completion of BP's acquisition of a 30% stake in 21 gas and oil production sharing contracts that RIL operates in the country, including the KG D6 prevent.
In the midcap index, Manappuram Finance soared by 29% at Rs 56, Glodyne Technologies raced ahead by 17. 7% at Rs 321 and State Bank associated with Mysore added 17. 4% at Rs 670. And the smallcap space saw the kind of Fineotex Chemicals jumping by 29. 4% at Rs 328, ICSA India attaining 21. 8% at Rs 77 and Man Industries adding 20% at Rs 149.
Within the metals space, JSW Steel topped the gainers charts by adding a massive 18. 5% at Rs 720. Tata Steel gained 15. 6% at Rs 488 as well as Jindal Steel added 13. 6% at Rs 525. Sesa Goa, Hindustan Zinc as well as Hindalco added between 10% and 12% each. DLF soared by 18. 2% at Rs 208 to consider the realty space by storm. Among the other prominent gainers in this particular space, Parsvnath Developers gained by 17. 4% at Rs 54 and Phoenix arizona Mills added 10. 4% at Rs 219. The banking space saw ICICI Financial institution jumping by 8. 1% at Rs 887, Yes Bank gaining 7. 5% from Rs 278 and HDFC Bank adding 7. 4% at Rs 471.
Within an indication of the buying fury that gripped the markets during the 7 days gone by, ONGC was the only Sensex stock to end the week at a negative balance, shedding 5% at Rs 263.
The next week would reveal whether the corrective rally still has some steam left about the upside. However, the developments on Wall Street on Friday do not augur well for Monday's market opening home. US stocks tumbled 2% after data showing zero jobs growth in August brought investors face-to-face using the prospect of another recession. The Dow Jones sunk 253 points and Nasdaq Composite was down 65 points about the last day of the week. Moreover, the markets will also start factoring within the outcome of the next scheduled on September 16. In the last plan meet, the central bank had hiked the repo and reverse repo prices by 50 bps each, more than market expectations.