MUMBAI: The stock market ended on a mixed note for the week with benchmark Sensex registering a modest rise of 28.24 points, end at 33,342.80, while Nifty closed with a minor loss of 38.15 points to conclude 10,283.60.
The key benchmark indices declined in three out of five trading sessions of the week. Selling was triggered by the possibility of the central bank cutting interest rates next month, dampened after India’s inflation picked up in October. Domestic investors turned cautious giving more weight to a slowdown in IIP to 3.8 percent, bogged down by geopolitical tensions in the Middle-East and rally in crude oil prices.
The selling pressure dragged the Sensex to its lowest closing level in more than three weeks and the Nifty to its lowest closing level in five weeks on Wednesday. The market, however, recovered due to bargain hunting in the last two trading sessions.
The rapid pace of recapitalisation process had kept the PSU bank stocks buoyant. Investor risk appetite soared on Friday after the US-based Moody’s upgraded India’s sovereign credit rating for the first time in nearly 14 years by a notch to ‘Baa2′ from Baa3’, with a stable outlook citing improved growth prospects driven-by economic and institutional reforms.
The rating upgrade came just weeks after the World Bank moved India up 30 places in its annual ease of doing business rankings. The S&P BSE Sensex resumed higher at 33,397.41 and hovered between 33,520.82 and 32,683.59 before finishing the week at 33,342.80, showing a modest rise of 28.24 points or 0.08 per cent. The Sensex had dropped by 371.00 points or 1.10 per cent last week.
However, the 50-share Nifty shed 38.15 points or 0.37 per cent to close the week at 10,283.60 after moving in a range of 10,343.60 and 10,094.00. Sectorwise, Realty, Bankex and Auto gained, while selling was witnessed in Capital Goods, Metal, Oil&Gas, IPO, PSUs, Teck, Consumer Durables, FMCG, Healthcare and Power.