Mumbai : Market found itself stuck in a range for better part of the day as the benchmark Sensex on Friday ended with a measly gain of nearly 40 points at 24,646.48, a one-month high, as Asian markets turned higher and prospects of a policy rate cut improved.
For the whole week, the Sensex rallied 1,492.18 points, or 6.44 per cent, and Nifty zoomed 455.60 points, or 6.48 per cent — their biggest weekly gain in more than four years. The 30-share barometer started on a strong footing before settling higher by 39.49 points, or 0.16 per cent, at 24,646.48, a level last seen on February 1. Intra-day, it slipped into the negative zone and hit a low of 24,531.80. This is its best weekly performance since December 2011. Higher levels could not be sustained as participants locked in gains in blue-chips. The gauge had gained 1,604.99 points in the previous three consecutive sessions. The NSE Nifty after recapturing the crucial 7,500-mark closed at 7,485.35, up 9.75 points, or 0.13 per cent.Traders said there is considerable improvement in risk appetite after the government kept its deficit target for the next fiscal at 3.5 per cent of GDP in the Budget 2016, raising hopes of a reduction in the policy rate.
“Market has gained more than 7 per cent during this week as the fiscal consolidation is attracting FIIs.
The consensus is pointing to a significant upside on US non-farm payroll data, which could provide clues on Fed rate hike direction,” said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.
