Indian stocks end marginally higher

MUMBAI — Indian equities ended marginally higher during the trading week ended on Friday, even as a key Indian stock market index managed to breach the 11,000-point mark for the first time in four months before sliding again.


Published: Sun 6 Aug 2006, 10:53 AM

Last updated: Sat 4 Apr 2015, 2:07 PM

During the week under review, the sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed on Friday with a net gain of 186.28 points or 1.74 per cent over the previous week's close.

This was the second consecutive week that the barometer index ended higher.

Looking ahead, analysts said trading was expected to be range-bound and that all eyes would be on the signals that emerge from events such as the meeting of the Federal Open Market Committee in the US on interest rates.

"If the US Fed does not hike interest rates, which is extremely unlikely at this stage, it would be a positive sign for Indian markets and the Sensex could move up by a couple of hundred points," an analyst with a brokerage here said.

"However, if the interest rates are hiked - we expect this to be no more than 25 basis points — it could also bring the markets down. For a sustained rise, it is vital for Sensex to close above the 11,000-point mark for three-four days."

Trading during the week started on a positive note, with the 30-share Sensex ending on Monday with a gain of 63.65 points or 0.60 per cent at 10,743.88, and rising marginally on Tuesday by another 7.78 points.

While Wednesday again saw the representative index gain 46.97 points or 0.43 per cent at 10,923, on Thursday it breached the 11,000-point mark for the first time in four months, before settling lower at 10,923.

It still managed a gain of 46.97 points or 0.43 per cent. But Friday saw the bellwether index slip on profit taking to end with a loss of 56.65 points or 0.52 per cent at 10,866.51 points.

Even though the Sensex ended higher by 186.28 points or 1.74 per cent over the previous week, a month-on-month comparison shows a fall of 53.13 points or 0.49 per cent, data available with the stock exchange showed.

Foreign institutional investors were net buyers to the extent of $180.4 million but domestic funds were net sellers. While automobile and software counters made some handsome gains, fast moving consumer goods and energy shares lost ground.

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