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  Business   Market  10 Dec 2016  Sensex racks up best weekly gain in 4 months

Sensex racks up best weekly gain in 4 months

Published : Dec 10, 2016, 2:59 pm IST
Updated : Dec 10, 2016, 3:00 pm IST

Market was comforted after European Central Bank extended its massive stimulus beyond March.

Bombay Stock Exchange
 Bombay Stock Exchange

Mumbai: The benchmark Sensex scored its best weekly number in four months by gaining 517 points to finish at 26,747 — a new 1-month high — while the broader Nifty finished above the key 8,200-level.

For both benchmarks, the weekly number is the highest since September 2 and it is the best Sensex closing since November 11 when the figure stood at 26,818.82. The key indices regained their footing for the week despite RBI's surprise move to hold interest rates.

The market was comforted after the European Central Bank extended its massive stimulus beyond March though it scaled down the size of the purchase. Return of foreign investors also buoyed mood.

Trading started in anticipation of rate cut from RBI in its two-day policy review, with rate-sensitive stocks gaining an upperhand on short-covering amid firmness in US markets in spite of the Italian political turmoil.

In his second monetary policy, Reserve Bank Governor Urjit Patel left the repo rate -- at which RBI lends to banks for short term -- intact at 6.25 per cent and the cash reserve ratio -- the share of deposits lenders park with the central bank -- at 4 per cent.

The decision to abolish the temporary 100 per cent CRR came as relief to banking stocks. Investor optimism in the wake of the global rally after ECB's stimulus action led to the market bounceback.

During the week, the Sensex gained 516.52 points, or 1.97 per cent, to settle at 26,747.18. It hovered in the range of 26,803.76 and 26,125.35 during the week. The Nifty 50 index during the week climbed 174.95 points, or 2.16 per cent, to close at 8,261.75 after shuttling between 8,274.95 and 8,056.85.

The buying was led by metal, auto, realty, oil and gas, PSUs and banks, except healthcare stocks. The second-line shares of mid-cap and small-cap companies witnessed good buying activity.

Tags: sensex, bse, benchmark index, markets, crr
Location: India, Maharashtra, Mumbai (Bombay)