Sensex recovers in volatile market, ends above 15k for the week

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The Sensex touched an intraday high of 15235.51 and a low of 15061.13 in Friday's session.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) dropped by 43.65 points or 0.98 percent to close the week at 4,401.55 from previous weekend's close of 4,445.20.

Concerns of worsening US housing downturn and rise in crude oil price rattled the indices in India and other Asian markets on August 1.

However, the Sensex staged a comeback, Friday, on the back of a good show by mid- and small–cap stocks and shares rose on strong blue-chip buying. The surge was also aided by positive global trends.

In the BSE-30, 25 shares gained and 5 fell. In the broader market, 1,544 shares advanced, 996 declined and 66 remained unchanged.

Most Asian indices advanced reacting to a US rally. Taiwan's Taiwan Weighted Index was up 1.20 percent at 9,058.23, Hong Kong's Hang Seng rose 0.42 percent at 22,538.44, Shanghai Composite surged 3.47 percent to 4,560.74, Seoul Composite was up 1.28 percent at 1,876.80. Only Japan's Nikkei slipped marginally by 0.03 percent at 16,979.86.

In the US, the Dow rose 100.96 points, or 0.76 percent, to 13,463.33, the Standard & Poor's 500 index picked up 6.39 points, or 0.44 percent, to close at 1,472.20, while the Nasdaq Composite index rose 22.11 points, or 0.87 percent, to 2,575.98.

Analysts said the market would continue to be driven by global cues in the coming week and would be volatile. However, they said the bearish sentiment was coming down, if Friday's gains are any indication.

Sensex gainers in Friday's rally included State Bank of India, up 2.72 percent to Rs. 1,636, NTPC (up 2.34 percent), HDFC (up 2.24 percent) and ACC (up 2.06 percent). Losers included Ranbaxy Laboratories (down 1.40 percent to Rs. 366.25), Dr. Reddy's Laboratories (down 1.28 percent), Ambuja Cement (down 0.96 percent) and Bharti Airtel (down 0.11 percent).

Other stocks which fared well includes Dena Bank, Oriental Bank of Commerce, Punjab National Bank, Bank of India, Bank of Baroda, Axis Bank (formerly UTI Bank), ICICI Bank, Grasim, Unitech, DLF, Orbit Corporation, Indiabulls Real Estate, Mahindra & Mahindra, Maruti Udyog, Bajaj Auto and Tata Motors.

Realty, metal, oil and gas and IT stocks were the worst performers during the week, while FMCG, consumer durables and banks witnessed least erosion.

Mahindra & Mahindra (M&M), Hindalco and Tata Motors were the top losers among the Sensex stocks during the week, losing more than 10 percent value, while Maruti Udyog, ITC, Ambuja Cement and SBI were the biggest gainers.

"The market saw steady buying interest throughout the day in index pivotals. All sectoral indices on BSE posted gains. Shares from real estate, banking and cement were in demand, while pharmaceutical shares were subdued," market participants noted.

"The market may see a fall accompanied by several small rallies on account of short-term triggers. The volatility will continue for one and a half week. The Bank of Japan may opt for a rate hike at its meeting this month and that may affect the market," said Vaibhav Singh, dealer, Institutional Business, Sumedha Fiscal Services.

"A volatile market gives a lot opportunities also. You can pick a stock or a sector, which you had missed earlier. So wherever we see a good value-buying opportunity, we are buying," said Bank of Baroda Asset Management fund manager Dipak Acharya.

According to market analysts, overall the markets witnessed positive trend during most part of the week following a spate of encouraging factors including the Reserve Bank of India's (RBI) quarterly review of monetary policy, which was considered very good for the market and robust earnings season.

The RBI kept bank rate and reverse repo rate unchanged while raising the Cash Reserve Ratio (CRR) by 50 basis points. The apex bank also maintained its GDP growth at 8.5 percent for this fiscal.

Only worrying factor that weighed on markets was fears of pull out by Foreign Institutional Investors (FIIs) amid a world-wide stocks crash triggered by US subprime mortgage and credit market worries.