Mumbai: Shrugging off rise in retail inflation and fall in industrial production, other national as well as global positive factors send both the key indices, the S&P BSE benchmark Sensex and CNX Nifty up by three per cent to end at three-week highs during the truncated week.
The BSE and NSE were closed on Friday, August 15, for observing "Independence Day".
The market resumed on a firm note after market regulator SEBI cleared REIT norms. Industry and experts welcomed REIT and Investment Trust guidelines and said it would help attract foreign as well as domestic investments to the tune of $15-20 billion through such trusts.
Encouraging first quarter earnings from some corporates as well as sustained FII buying also supported the market sentiment.
The macro concerns somewhat felt moderated for market players as the government data's of key Wholesale Price Index dipped to five month low to 5.19 per cent in July, though higher retail inflation (CPI) figures and sluggish Industrial Production growth rate (IIP) cause of concerns.
The benchmark BSE S&P Sensex resumed higher and traded between 26,135 and 25,437.05 before ending to three-week high of 26,103.23, showing a gain of 774.09 points or 3.06 per cent. In last two-week, it had fallen by 797.61 points or 3.05 per cent.
The NSE 50-share Nifty also spurted by 223.15 points or 2.95 pct to conclude at three-week high of 7,791.70. On the global front, reduced geo-political concerns also fuelled buying activity on the domestic bourses.
The Indian rupee appreciated for the second week in a row and closed up by 39 paise to end at two-week high of 60.76 against the Greenback during the shortened week under review following sustained dollar selling by exporters and some banks amid bullish local equities.
The Forex market was closed on Friday, August 15, on account of "Independence Day".
Continued foreign funds inflow in domestic stocks and lack of dollar demand from importers, mainly oil refiners, after fall in global crude oil prices due to easing geo-political concerns.
At the Interbank Foreign Exchange (Forex) market, the local unit commenced the week better at 61.09 a dollar from last weekend's close of 61.15 and dropped to a low of 61.30 on Wednesday on fresh dollar demand from importers, amid uptick in retail inflation and slowing industrial production growth.