Mumbai: Optimism of a stable government after the poll results next Friday amidst heavy FII inflows led to a surge at bourses as the benchmark Sensex zoomed to new historic highs during the weekend trade.
This was after volatile conditions in the earlier part of the week due to extremely cautious move by investors, leading to narrow-trading momentum during most of the sessions. The market had sidelined some of the positive corporate results and signs of declining inflation failed to enthuse the market sentiment amidst nervousness after IT major Infosys was downgraded by UBS.
However, the fag-end saw frenzied buying across the sectors on widely perceived BJP's prime ministerial candidate Narendra Modi winning absolute majority would lead a business- friendly stable government as the Sensex rebounding sharply to breach the crucial 23,000-level for the first time during intra-day trade. The S&P BSE benchmark Sensex resumed slightly higher at 22,412.80 and rallied to historic high of 23,048.49 and a low of 22,277.04 before finishing the week at 22,994.23, disclosing a sharp gain of 590.34 points or 2.63 per cent.
The NSE 50-share Nifty also spurted by 164.00 points, or 2.45 per cent, to end at 6,858.80. Shares of banking, consumer durables, oil & gas, capital goods, PSU, metal and power were the star performers during the week.
