Weekly review: Market marches ahead on rate cut hopes, Sensex rises 270 pts
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Stocks: Despite tail-end selling in view of cautious approach by investors, both S&P BSE benchmark Sensex and NSE Nifty gained for the second straight week on persistent buying mainly in rate-sensitive sectors on hopes of a rate cut by the Reserve Bank of India next week.
Brokers said the sentiment was bolstered on expectations that easing inflation and weak commodity prices might prompt the central bank to cut interest rate in an aggressive manner in its monetary policy meeting on May 3.
Persistent capital inflows from foreign funds also boosted the market sentiment. Foreign Institutional Investors (FIIs) have invested Rs 3,045.95 crore during the current week, including the provisional figure of April 26.
IT stocks like Wipro, Infosy and TCS saw selling on muted growth prospects. The infotech sector was particularly impacted because of the concerns on provisions of Immigration Bill tabled in the US Senate. The world's largest economy is the biggest market for Indian IT firms.
The 30-share Sensex resumed lower at 18,989.78 and dropped to 18,989.78, but recovered afterwards to hit a 6-week high of 19,434.85 before ending the week at 19,286.72, a net gain of 270.26 points, or 1.42 per cent, from last weekend's level. The BSE benchmark has gained a hefty 1,044.16 points, or 5.72 per cent, in the last two weeks.
The NSE 50-share Nifty also rose by a healthy 88.35 points, or 1.53 per cent, to finish the week at 5,871.45. The broader index has gained 342.90 points, or 6.20 per cent, in the last two weeks.
The market had a truncated trading week as both BSE and NSE were closed on April 24 on account of "Mahavir Jayanti".
Buying was broad-based as 21 of the 30 Sensex scrips ended higher, while nine posted losses.