Sensex snaps losing spree, vaults 305 pts on buying

Tags: Stock Market
Sensex posted its first weekly gain in the new year on the back of fresh buying and drop in inflation numbers, which fuelled hopes of RBI easing interest rates in the upcoming policy meeting.

The benchmark S&P BSE Sensex snapped the two-week losing streak and surged 305 points to end the week above 21,000. Bourses had a subdued beginning of 2014, which will see general election, a development that will be keenly watched by market players.

Fresh foreign fund inflows in equities also boosted the market sentiment. FIIs invested a net of Rs 1,577.97 crore in stocks during the week, as per the SEBI's data, including the provisional figure of January 17.

Weaker-than-estimated US employment data, released last Friday, cheered global financial markets, as investors feel the Federal Reserve may not now accelerate the pace of reduction of its monthly bond purchases.

Inflation, as measured by the Wholesale Price Index (WPI), declined to a five-month low of 6.16 per cent in December.

Shares of capital goods, refinery and banking sectors firmed up on good buying enquiries.

Infosys stock rose 5.05 per cent after the company raised its revenue growth guidance for the current fiscal year.

However, Bharti Airtel fell 5.98 per cent on concerns Reliance Jio's participation in the upcoming spectrum auction may hurt the top telecom firm's marketshare and profitability.

The 30-share S&P BSE Sensex resumed strong and touched a high of 21,379.29, the second-highest intra-day level after touching 21,483.74 on December 9. However, it fell afterwards to end at 21,063.62, still showing a gain of 305.13 points, or 1.47 per cent, from its last weekend's level.

The Sensex had dropped 435.09, or 2.05 per cent, in the previous two weeks.

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