Sensex rises 2% last week; IT, Auto, CD rally

It was a fabulous week for the domestic bourses, which registered triple digit gains salvaged all the downturn incurred by Indian equity markets during previous trading week. Strong global peers mainly perked up bourses, which showcased resilience in lights of reports suggesting Government ruling out immediate plan to raise domestic fuel prices. Sentiment at Dalal Street were buttressed on widespread buying by funds and retail investors tracing firm overseas trend after ECB unveiled a plan to buy the bonds of troubled Euro-zone nations in a bid to tackle the region"s long-running debt crisis. The 36th trading week of 2012 ends with analyzing fresh jobs data and hoping that the weak report would spur the Federal Reserve to act.Sectorally, BSE IT, Teck, Auto and Consumer Durables rallied this week. The 30-share index, Sensex surges 320.09 points, or 1.84% to 17,749.65 for the week ended Sept. 08, 2012. On the other hand, the broad based NSE Nifty gained 100.2 points, or 1.91%, to 5,358.7 during the week. All the sectoral indices at the BSE ended in green.Top gainers were BSE IT (4.2%), Teck (4.18%), Auto (3.24%), Realty (2.72%), Consumer durables (2.53%) and Oil & gas (2%). Rest BSE Metal, FMCG, PSU, Capital goods traded in (0-1% range).Meanwhile, BSE Midcap and Smallcap gained 2.29% and 1.58% respectively. While commenting on the market outlook, broking firm RK Global said," In the week ahead, we do expect the domestic markets will move in perfect tandem with the global cues and events. Though the bond purchases will not result in "expected high" liquidity being created in global markets, Thursday"s announcement put paid to investor fears of a potential Euro area break-up and boosted investor sentiment. Markets will be expecting this substantial action by the ECB can lead to a relief rally in the domestic market, providing respite from the recent range-bound trade. Investors will watch equity markets keenly on next week, after the ECB"s bond-buying programme on Thursday to lower struggling Euro-zone countries" borrowing costs. It is the third instance of bond buying by ECB in a matter of eight months. On the good side, the massive bond buying programme could boost capital flows into the country and help cover the huge current account deficit."India"s annual exports fell 14.8% to USD 22.4 billion in July, while imports fell 7.6% to USD 37.9 billion, leaving a trade deficit of USD 15.5 billion, the trade ministry said. Exports have fallen from year-earlier levels in four out of the last five months. Exports between April and July fell 5.1% on year to USD 97.7 billion. Oil imports were down 5.5% to USD 12.2 billion in July. The other main news was from the home ground. The petrol prices were expected to see a rise of Rs 5 but the government has no immediate plan to raise petrol, diesel, kerosene and cooking gas prices and the pricing issue will be decided by the Cabinet, oil minister Jaipal Reddy said on Friday. He said prices would be raised only after a political consensus. "Fuel price is a classic case of politics defeating economics," he told.