The BSE benchmark Sensex, logged its best weekly gain of the calendar year by rising 754 points on fresh buying from operators and investors, on hopes of interest rate cut by the apex bank, coupled with Prime Minister Dr Manmohan Singh’s thrust on infrastructure sector.
Fresh capital inflows from foreign funds into the equity market and a stable rupee against the dollar also boosted the market sentiment.
“Hopes of a rate cut from RBI in the forthcoming meeting (June 18) led to good bounce back,” a broker said.
The Prime Minister on Wednesday laid out ambitious infrastructure development plans for the current fiscal in an effort to counter criticism over a perceived policy paralysis that has led India into its worst slowdown in nearly a decade.
Shares of capital goods, banking, realty, power, auto and refinery shot up sharply on good buying support.
Small and Mid-cap shares also gained moderately on the back of buying from retail investors.
The 30—share Sensex resumed lower at 15,808.88 and hovered in a range of 16,767.77 and 15,748.98 before ending the week at 16,718.87, a hefty rise of 753.71 points, or 4.72 per cent.
This was the best weekly gain logged by the benchmark index in the current calendar year.
The NSE’s 50—share Nifty index also rose by 226.75 points, or 4.68 per cent, to finish the week at 5,068.35.