Indices close in on all time highs as the up trend continues during the week
19 November 2005
Markets seem to be bent on breaking conventional theories and expectations. They kept their upward momentum comfortably this week, despite a 10-per cent rise in the frontline indices without any correction during the previous two weeks.
More cautious investors were expecting a deeper correction after the 1000 point fall in the Sensex in October. They remained in the sidelines and resolutely waited for the next wave of correction. A majority of the market participants belong to this category and they missed out a 12-per cent jump in the large indices in just three weeks.
The short-sellers were the worse off as the more than 800 point pull back rally on the Sensex came with hardly a pause. Every time the indices showed some signs of fatigue, fresh buying emerged. Global markets have also remained strong during this week with the fall in oil prices helping the year-end rally.
Markets opened the week with moderate gains as bank stocks helped the indices to recover from a mid-session weakness. Wednesday belonged to Reliance Industries and Infosys as both stocks closed with strong gains. The Sensex crossed the 8600 mark in intra-day trades.
Heavyweights came to the rescue once again on Thursday as the markets recovered from early weakness and closed higher. Friday saw the indices opening with good gains. Though they turned volatile in late trades, the indices closed with gains of close to half a per cent each.
The Sensex added 216 points or 2.55 per cent during the week and the Nifty went up by 71 points or 2.79 per cent over the week.
Mid-caps also maintained their up trend though the overall gains were lower than frontline stocks during the week. Some of the momentum stocks in the mid-cap sector returned to action though the frenzy of September and early October is still missing. Trading volumes in some of the stocks which had slumped following SEBI action have gone up which is a worrying factor. The CNX Mid-Cap 100 index gained 79 points or 2.14 per cent during the week.