Sensex rallies over 500 points for the week

19 May 2007

Frontline Indian indexes started on a firm note this week, helped by sustained gains across other Asian markets. They saw little volatility as most sectors participated in the rally. Oil & gas and banking stocks were among the best performers

Tuesday saw a modest correction, in line with the trend in other regional markets. Technology stocks remained subdued while heavyweights ONGC and Reliance Industries also lost ground. Banking and oil marketing stocks did very well

Strong gains in banking stocks helped the Sensex to settle above 14000 on Wednesday. Reliance Industries, Reliance Communications and select engineering stocks provided very good support. Oil marketing and select metal stocks were weak.

Oil & gas and banking stocks continued to rally on Thursday as well and the Sensex closed at14300. Select technology stocks recovered and provided additional support to the indexes. Bajaj Auto saw a sharp fall after the company announced a 3-way de-merger plan

Indian indexes consolidated on Friday despite the correction in other regional markets. Bajaj Auto slipped further, taking total losses in two sessions to nearly 15 per cent. Select cement and oil & gas stocks also lost ground. Select FMCG stocks did well while banking stocks sustained their upward momentum.