MUMBAI, Dec 21: The benchmark S&P BSE Sensex spurted by 364 points this week on almost across-the-board buying triggered by frantic foreign fund inflows amid status quo stance taken by RBI on key interest rates.
On Friday, the 30-share index spurted by 371 points on sharp rise in heavyweight Reliance Industries, whose stock flared up after the government allowed the company, with some riders, to increase price of its natural gas from April.
The market lost 151 points on Thursday in a knee-jerk reaction to US Federal Reserve’s decision to taper its monthly bond buying programme starting next month. It bounced back smartly the next day.
According to brokers, the market had already factored in the much-awaited announcement about stimulus roll-back.
The Sensex resumed steady at 20,714.26, but dropped to 20,568.70 on rise in inflation and fears of hike in interest rates before the December 18 RBI policy meeting.
However, the BSE benchmark index later recovered to 21,117.99 before ending at 21,079.72, showing a smart rise of 364.14 points, or 1.76 per cent, over the last week as RBI unexpectedly decided to keep key policy rates unchanged.
The NSE 50-share Nifty also rose by 105.85 points, or 1.72 per cent, to end the week at 6,274.25.
IT stocks rose as Fed’s decision to slow the pace of its bond purchases boosted investor confidence about economic recovery in US, the biggest market for Indian infotech firms.
Shares of healthcare, realty, auto, refinery and power also firmed up on good buying support.
Small and mid-cap shares moved up on renewed demand from retail investors and outperformed the Sensex. (AGENCIES)
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