Indices maintain their up trend during the week and record new highs

17 December 2005

The markets opened the week on a firm note as the rally continued across most Asian markets. The indices broke their previous lifetime highs before giving up part of their gains in a late afternoon sell-off.

Both indices gained over 1.5 per cent each on Tuesday even as other Asian markets were subdued as oil broke through the $61 mark. Autos and banking stocks went up substantially on heavy buying interest.

The Sensex went past the 9300 mark in early trades on Wednesday. Asian markets were once again weak after the US Fed raised interest rates leading to concerns of lower investment flows into Asia. The indices corrected in the afternoon and closed lower.

The correction continued on Thursday as banking and consumer non-durable stocks came under severe selling pressure. The decline was arrested on Friday as strong buying in banking and metal stocks helped the indices to recover all their losses.

The Sensex recorded a new intra-day lifetime high of 9309 during the week and the Nifty saw a high of 2826.