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Markets: Markets extend gains, Sensex up 4.26% |
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Last week,the Bombay Stock Exchange 30-share index (Sensex) extended its gains, rising by 4.26 per cent in a brief three-session week, boosted by encouraging guidance announced by the IT bellwether Infosys Technologies but seems to be facing hurdles to gain further momentum.
According to analysts, the market is facing resistance around the 50-week moving averages and has to cross and sustain above these levels for a consistent bounce as the averages had worked as a support over the past 3-4 years.
The decision to hike the Cash Reserve Ratio (CRR) by 0.5 per cent by RBI and unstable global Markets could hinder the progress of bourses at home, they added.
During the week which had two public holidays, the market sentiment was enlivened by a forecast of normal monsoon and continued firm global cues as well as a moderate fall in inflation figures.
In the week to April 19, which had two public holidays, the BSE barometer ended the week at 16,481.20, a net gain of 673.56 points over its last weekend's close of 15,807.64.
The broader 50-share S&P CNX Nifty of the National Stock Exchange soared by 180.60 points or 3.78 per cent to close the week at 4,958.40 from previous weekend's close of 4,777.80.
Investors were enthused after the announcement of fourth quarter results by the country's second largest software exporter as the company revised its mid-term outlook and also showed profit growth in Q4 despite lingering fears of a US recession and the rupee's sharp appreciation against dollar during 2007.
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