Mumbai: Shrugging off rise in retail inflation and fall in industrial production, other national as well as global positive factors send both the key indices, the S&P BSE benchmark Sensex and CNX Nifty, up by three per cent to end at three-week high during the truncated week.
The BSE and NSE were closed on Friday, August 15, for 'Independence Day'. The market resumed on a firm note after SEBI cleared REIT norms. Industry and experts welcomed REIT and Investment Trust guidelines and said it would help attract foreign as well as domestic investments to the tune of USD 15-20 billion (over Rs one lakh crore) through such trusts. Encouraging Q1 earnings from some corporates as well as sustained FII buying also supported the market sentiment. The macro concerns somewhat felt moderated for market players as the government data of key Wholesale Price Index dipped to five month low to 5.19 per cent in July, though higher retail inflation (CPI) figures and sluggish Industrial Production growth rate (IIP) remain causes of concern. Retail inflation, measured on consumer price index (CPI), inched up to 7.96 per cent in July as compared to 7.46 per cent in June, while the growth rate of the Index of Industrial Production (IIP) slowed to 3.4 per cent in June as against 5.0 per cent (revised) in May, showing signs of sluggishness in the economy.
The BSE S&P Sensex resumed higher and traded between 26,135 and 25,437.05 before ending to three-week high of 26,103.23, showing a gain of 774.09 points or 3.06 per cent. In last two weeks, it had fallen by 797.61 points or 3.05 per cent. The NSE 50-share Nifty also spurted by 223.15 points, or 2.95 per cent, to conclude at three-week high of 7,791.70.
