Markets had a good showing last week and continued their gains from the previous week. The Midcap and Smallcap segment outperformed the benchmark indices on expected lines. BSE SENSEX was up 607.62 points or 1.68 per cent to close at 36,671.43 points. NIFTY gained 171.90 points or 1.58 per cent to close at 11,035.40 points. BSE Midcap gained 2.08 per cent and BSE Smallcap was up 3.91 per cent. This positive movement in the smaller stocks has brought smiles on the faces of many investors after a very long time.
The gains in India were even though Dow Jones was down 576.08 points or 2.21 per cent at 25,450.24 points. The rupee gained 76 paisa or 1.07 per cent to close at Rs 70.15 to the dollar.
The election code would kick in immediately after the announcement of Lok Sabha election schedule and hopefully some of the name calling by politicians would reduce. In any case this election is going to be dirty and one should expect people not only accusing each other but then running to the Election Commission to file a complaint.
Markets are in a much better frame of mind and FPI’s have seen buyers in recent weeks. This has helped in bringing about stability and the crossing of key resistance levels of 36K and 36.5K on the SENSEX and 11K on the NIFTY. The important point here is the fact that these levels have sustained through the week. Further, the breadth of the market has increased significantly, and larger number of stocks have seen increase in volume and price rise. Stocks gaining 10 per cent and more during the week are significantly higher than in previous weeks.
The only sectoral indices which were down last week were the BSE IT and