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Market: Weekly round-up: Sensex breaches 15,000 on divestment news |
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Both the Sensex and the Nifty recorded a nine-month high, with Sensex closing higher at 14,840, adding 215 points and the Nifty surged 81 points to finish at 4,529. Strong Asian markets and brisk buying by FIIs fuelled the rally.
The asset base of the mutual fund industry rose sharply in May and crossed the Rs 6 lakh crore-mark on the back of surging equities and improvement in liquidity. The assets under management (AUM) grew by over 15 per cent to Rs 6,37,609 crore from Rs 5,51,254 crore in April, according to AMFI.
On Thursday the markets closed above the 15,000 level on the back of divestment news and some value buying in infrastructure, telecom, pharma, cement and banking stocks. The Sensex finally closed 137 points higher at 15,008 and the Nifty advanced 42 points to end at 4,572.
The bourses closed the week on a positive note. On Friday the benchmark Sensex ended with a gain of 95 points at 15,103 and the Nifty added 14 points to finish at 4587.
The sectoral indices that gained the most during the day were realty, capital goods, health-care and power. Metal, consumer durables and IT were among the losing sectoral indices. FIIs were net buyers of equity worth Rs 465 crore on Thursday while DIIs sold for Rs 530 crore in the net.
From its lows of October 2008 the Sensex has more than doubled, and surged close to 50 per cent in the last two months. In the run-up to the elections and after the results, the sentiment in the market has changed. Fundamentals have been long forgotten and this has been a liquidity-driven rally.
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