Mumbai: Stocks: The benchmark BSE Sensex extended gains for the second straight week, surging 219 points to end at 27,324.00, on persistent buying mainly in auto, banking, consumer durable and healthcare stocks on hopes of cut in policy rates by RBI. Hopes of timely arrival of southwest monsoon by IMD amid short-coverings at the fag-end of the week also boosted the market sentiment.
The Indian Meteorological Department said that conditions are becoming favourable for advancement of southwest monsoon and is likely to hit the Kerala coast on May 30 even as the country stares at the possibly of below normal rains for a second consecutive year. The Sensex resumed higher at 27,249.42 and hovered in a range of 26,750.01 and 27,544.24 before ending the week at 27,324.00, showing a gain of 218.61 points or 0.81 per cent. It has gained 312.69 points of 1.16 per cent in two weeks.
The 50-share NSE Nifty also firmed up by 70.85 points or 0.86 per cent to close at 8,262.35 after moving in a range of 8,089.80 and 8,332.75 during the week. Of the 30-share Sensex pack, 16 stocks rose and the rest fell in the week. On the macro front, the industrial output growth touched a five-month low of 2.1 per cent in March from a revised 4.9 per cent in February on the back of an across-the-board slowdown in production while consumer price index-based retail inflation eased to a four-month low of 4.87 per cent in April from a revised 5.25 per cent in March as prices of food items, vegetables and fruits turned cheaper.
