Another week of volatile trading saw the markets recover more of the ground lost in recent weeks and  close within one percentage point of the June 10th high. The Nifty ended the week on 4,569, up 194 points or 4.3% since last Fridays close. Meanwhile the Sensex also rose 4.4% to end the week on 15,379.

FIIs continued to be active in the market and untill Thursday we have seen nine straight days of net purchases from overseas funds. All the main sectoral indices made gains this week with the majority advancing in the 2-3% range. The big gainers were Realty, IT and Metals sectors which all recorded heavy advances and gave solid support to the main benchmark indices.

The recent bouyancy has been driven in a large part by increasing optimism on the global scene with economic data continuing to be interpreted as showing a bottoming out process in most of the developed markets. The global cues have for the time being overridden concerns regarding the fiscal budget and the lack of major announcements regarding economic reforms, which had sparked the earlier post-budget correction.

This entry was posted on Friday, July 24th, 2009 at 1:36 pm and is filed under Market updates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.