Despite remaining quite sluggish, and turning listless at times, the Indian stock market posted some solid gains during the week ended 23 November 2012. Some encouraging economic data from China, fairly steady inflow of funds from foreign institutional investors and expectations of some significant announcements on the reforms front during the winter session of the parliament contributed to the surge.
An announcement from the government that it will liberalize the insurance and pension sectors and also place a bill to amend banking regulations during the winter session kept the mood positive.
While the BSE benchmark Sensex ended the week with a gain of nearly 200 points - 197.20 points to be precise - or 1.08% at 18,506.57, the broader 50-stock Nifty index of the National Stock Exchange closed at 5626.60, gaining 52.55 points or 0.94%.
Even as large cap stocks surged higher, shares from midcap and smallcap segments were subdued almost right through the week. The BSE Midcap index ended lower by about 0.9%, while the Smallcap barometer finished lower by 0.75%.
The market was quite sluggish on Monday, despite opening on a fairly positive note. Weak European markets and lack of triggers from other bourses rendered the mood a bit bearish. Though the statement from finance minister P Chidambaram that the government has finalised amendmens to the General Anti Avoidance Rules did cheer investors a bit early on, the mood turned cautious swiftly thereafter.
The Sensex ended the session with a gain of 30 points, while the Nifty ended in negative territory, netting a marginal loss of 2.65 points.
The trend was almost similar on Tuesday. After moving higher amid hopes that U.S. policymakers will come out with a solution to fix the fiscal cliff, the market retreated on lingering worries about eurozone debt crisis. The Sensex lost around 10 points and the Nifty closed flat that day.
On Wednesday, the market shrugged off a weak and listless start and ended higher, amid expectations the government will strive to pass insurance and pension bills during the winter session of the parliament. The Sensex gained 131 points and the Nifty moved up by around 43 points.
After a positive start on strong global cues, the market suffered a setback of sorts around noon, but recovered swiftly and ended with solid gains on Thursday, despite remaining a bit lackluster at times.
The Lok Sabha speaker's decision to disallow a no-confidence motion against the government helped ease worries on the political front and aided sentiment on the bourses. Some impressive economic data from China and a positive trend in European markets too contributed to the upmove. While the Sensex ended up 60 points, the Nifty closed higher by about 13 points on that session.
On Friday, the market started off on a slightly shaky note and slipped a bit deep down into the red post noon following the adjournment of the Lok Sabha due to uproar over the FDI in retail. And then, despite finding some support towards the closing minutes, it ended the day on a flat note.
The Sensex slid by over 150 points from the day's high, ended the day with a marginal loss of 10.80 points, while the Nifty closed almost unchanged.
Automobile stock Mahindra & Mahindra
ended 6.6% up last week, hitting a new high in the process. Maruti Suzuki
moved up 3.7%.
HDFC Bank, ITC
, Tata Power
, Sun Pharmaceutical
Industries and Coal India
gained 2% - 5%. Wipro
and Hindustan Unilever
also posted solid gains.
NTPC ended lower by around 4%. The stock drifted lower after the Cabinet Committee on Economic Affairs approved disinvestment of a 9.5% stake in the company - the government holds 84.5% in the power firm - through an Offer for Sale through the exchanges.
Among other notable losers in the Sensex were, BHEL
, Tata Motors
, Tata Steel
and GAIL India.
On Friday, Hindustan Copper
tumbled 20% on huge volumes following the government fixing the floor price for its stake sale offer at a deep discount to the ruling market price. On NSE, over 7.8 million shares were traded at the Hindustan Copper counter in that session. The stock had posted a hefty gain a day earlier.