1. Home
  2. Business
  3. RBI rate cut keeps Sensex hopes

RBI rate cut keeps Sensex hopes alive

IANS November 23, 2014 13:31 IST
IANS

Mumbai: With the hope against hope of seeing the central bank cut key interest rates and following an encouraging set of inflation and factory output numbers, the Indian equities markets made healthy gains of more than one percent in weekly trade. The benchmark Sensex was up by 1.02 percent or 287.97 in the week ended Nov 21 from its previous weekly close on Nov 14. The index closed at 28,334.63 points, while it had ended trade at 28,046.66 points points on Nov 14.

In the week ended Nov 14, the benchmark had made gains of 0.63 percent or 178.03 in the weekly trade from its previous close on Nov 7. The index closed at 28,046.66 points, while it had ended trade at 27,868.63 points points on Nov 7. On Monday, the benchmark index touched a new high of 28,205.71 points — surpassing its previous high of 28,126.48 points reached on Nov 12 and closed the trade at 28,177.88 points – a new record closing high, up 131.22 points or 0.47 percent from its previous day's close of 28,046.66 points.

However, on Nov 18, the benchmark index closed flat — down 14.59 points or 0.05 percent – as information technology (IT) stocks lost marginally. The index did managed to touch a new intra-day high of 28,282.85 points, surpassing its previous record of 28,205.71 points hit Monday.

It closed trading at 28,163.29 points. After touching consecutive highs the, benchmark index closed Wednesday's trade down 130.44 points or 0.46 percent. The index though touched a new intra-day high of 28,294.01 points. On Nov 19, it closed the trading at 28,032.85 points – down 130.44 points or 0.46 percent.

It was a flat scene again on Nov 20 with the benchmark index closed trading flat at 34.71 points or 0.12 percent at 28,067.56 points. On Friday, the benchmark index made good its prior losses and gained 267.07 points or 0.95 percent up after hitting a record high of 28,360.66 points.

It closed trading at 28,334.63 points. According to market analysts every sign made by the central bank will be watched anxiously and the near-to-medium term trading trends will depend on that. ”We expect markets to remain focused on the upcoming RBI (Reserve Bank of India) meeting on Dec 2. Any dovish signal from the RBI will buoy sentiments within the economy and lead to further improvement at the ground level,” said Dipen Shah, head- private client group research, Kotak Securities.

The supportive global cues, expectations of improvement in growth rates and expectations of an early interest rate cut also kept foreign investor's clued to the Indian markets. For the week ended Nov 21, the FPIs massively bought stocks worth Rs.1,675.75 crore or $271.65 million, according to data with the National Securities Depository Limited (NSDL).

The had sold only Rs.412.23 crore or $66.37 million worth of equity in the week under review. For the previous week ended (Nov 15), the FPIs had bought stocks worth Rs.5,674.21 crore or $922.4 million. The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI) to create a new investor category called FPIs.