Mumbai: Continuing their rallies, the BSE Sensex and the CNX Nifty set new records during the week under review and closed at new closing highs of 28,693.99 and 8,588.25 respectively on sustained foreign fund inflows amid falling crude prices.
Global crude oil prices dropped to USD 72/barrel, the lowest level since August 2010. Falling oil price is good news for India, which imports 80 per cent of its requirements. This will also help the country narrow its Current Account Deficit as well as fiscal deficit. Interest rates related shares from realty, banking and auto were in keen demand on hopes of rates cut. IT, Metal and Power sectors too attracted good buying support.
The benchmark Sensex resumed higher at 28,413.01 and shot up further to intra-day life-time high of 28,822.37 before logging its new closing high of 28,693.99, a gain of 359.36 points or 1.27 pct during the week. It has gained by 2,585.46 points or 9.90 pct in six consecutive weeks. The CNX 50-share Nifty also rose by 110.90 points or 1.31 pct to register its new closing peak of 8,588.25 after touching an intra-trade all-time high of 8,617.00.
It gained 808.55 points or 10.39 pct in six straight weeks. "Sentiments were buoyed by OPEC's decision to sustain production levels and the subsequent sharp fall in crude prices. Markets are hoping for a rate cut in the RBI policy meeting next week," said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
