Markets gained over 3 per cent this week and made up for the losses incurred in the previous week due to value buying opportunity and positive global cues. Both the S&P BSE Sensex and the Nifty 50 regained psychologically important levels — the 23,000 level for the former and the 7,000 level for the latter.

The Sensex climbed 723.03 points or 3.15 per cent to settle at 23,709.15, while the Nifty 50 rose 229.80 points or 3.29 per cent to settle at 7,210.75.

China’s metal move

“Markets were buoyed by the rise in crude prices from their lows on expected freeze in supply by four producing countries. There was some bottom-fishing in stocks which had corrected sharply,” said Dipen Shah, Senior Vice-President & Head of Private Client Group Research, Kotak Securities.

Metal sector was the biggest gainer as People’s Bank of China set higher reference rate for the yuan against the dollar followed by value buying opportunity and stock-specific positive announcements in select public sector bank stocks.

Information technology and oil & gas exploration stocks gained on rupee depreciation and rise in crude prices, respectively.

Rupee fell to a 30-year low at 68.67 on Friday and crude regained the $34 a barrel level.

Going ahead, markets are likely to remain volatile on account of the Budget session slated to begin from February 23 and expiry of derivative contracts.

Railway stocks as well as sectors relying on it, such as steel, cement, coal, iron ore and fertiliser, are likely to be in focus on account of the Railway Budget scheduled for February 25.

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