Indian bourses ended well past the 17k-psychologically important level over the week as positive liquidity situation and a strong build-up in the derivatives series indicated bullish trend in short term.
Indian bourses ended well past the 17k-psychologically important level over the week as positive liquidity situation and a strong build-up in the derivatives series indicated bullish trend in short term.
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Analysts said the market is set to touch higher levels in the coming days after the government's broadly hinted against any tax to curb capital inflows into equity or withdrawal of the stimulus packages in the current financial year.
Planning Commission Deputy Chairman Montek Singh Ahluwalia reportedly ruled out any possibility of imposing tax to curb foreign funds, key for developing infrastructure in the country after the market met resistance on Thursday on speculation of such steps by the government.
The market is expected to draw support from a gradual recovery in the economy with simultaneous growth in India's industrial production in the last few months. The business confidence in India also witnessed a sharp rise from that of during the financial crisis a year ago.
Hectic short covering ahead of the expiry of November contract of the Futures & Options is seen as an indicator of bullish fervour in the next derivatives series.
In the week to November 21, the Bombay Stock Exchange 30-share Index ended at a four-week high of 17,021.85, a net rise of 173.02 points or 1.03 per cent over its last weekend's close. The BSE barometer gained 1,126 points or 7.0 per cent in the three weeks.
Similarly, the National Stock Exchange's Nifty also ended the week above the 5,000-level at 5,052.45, netting a rise of 53.50 points or 1.07 per cent from its last weekend's close.
Investors will focus their attention on the key reform bills such as the State Bank of India Amendment Bill, the Pension Fund Regulatory and Development Authority bill and the Insurance Bill, which is likely to be tabled in the winter session of Parliament as government has set priority for financial sector.
During the week, the trading volume on the BSE and NSE, however, was relatively low at Rs 24,992 crore and Rs 77,082 crore respectively from its last week's turnover of Rs 29,683 crore and 85,961 crore.
Auto stocks attracted keen demand during the week. Hero Honda gained 4.58 per cent, Maruti Suzuki 4.23 per cent and Tata Motors 3.70 per cent. Other gainers among the Sensex pack were TCS was up 3.45 per cent, Wipro 2.73 per cent, Infosys Tech 2.91 per cent, Tata Steel 5.82 per cent, ACC 4.14 per cent and Hindalco 2.71 per cent.
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