Hectic across the board buying over the weekend on hopes of a cut in key rates by RBI in its monetary policy meeting on January 29 helped the BSE benchmark Sensex extend gains for the second straight week as it rose by over 64 points to end at more than two—year high of 20,103.53 points.
The market resumed on a strong note after Reliance Industries (RIL) announced 24 per cent jump in Q3 net profit, first increase in profit after four quarters of declining returns.
The share price touched a new 52—week high of Rs 954.80 on Monday during intra—day trade.
The sentiment got a boost after global credit rating agency Moody’s Investors Services on last Saturday retained India’s sovereign rating at Baa3, with a stable outlook.
Brokers said profit—booking at the two—year high level kept the Sensex hovering sideways near 20,000 mark for the next couple of days till Thursday.
On Friday it bounced back with a vengeance on buying in interest—rate related stocks on hopes of a rate cut by the Apex bank on Tuesday and also frantic short—coverings by operators ahead of the expiry of derivatives contract on January 31.
The Sensex later finished the week at 20,103.53, its highest closing since January 6, 2011 when it had ended at 20,184.74, showing a rise of 64.49 points, or 0.32 per cent.
Last week, the 30—share index had flared up by 375.40 points, or 1.91 per cent, on pro—reform measures like partial deregulation of diesel prices and Government’s decision to defer the implementation of controversial anti—tax evasion proposal GAAR by two years.