Sensex snaps three-week losing streak on strong economic data
December, 04th 2010
The BSE benchmark Sensex snapped three-week losing streak and shot up by 830 points on on positive global and domestic economic data. Firm European advices following announcement of a rescue package of USD 115 billion to debt-ridden Ireland by European authorities on last Sunday, boosted the market sentiment.
A robust Q2 September GDP data, renewed capital inflows and heavy bidding by foreign funds to the initial public offer of state-run manganese producer MOIL mainly gave a tonic to the market, a broker said.
The core infrastructure industries grew by seven per cent in October against 3.9% in the same month last year, helped by robust performance of cement and crude oil sectors, expecting to give a push to investment climate.
Sharp fall in food inflation to single digit to four month low at 8.60% for the week ended November 20 from 10.15% in the previous week also affected the market sentiment.
The BSE Sensex advanced 830.32 points or 4.34% to end the week at 19,966.93 from its last weekend's level after moving in a range of 20,084.25 and 19,167.19.
The S&P CNX Nifty also rose by 240.85 points or 4.18% to 5,992.80 from its last weekend's level.
Business activity in India's services sector surged to a four-month high in November 2010, driven by robust growth in new orders.