The 30 scrip Index of Bombay Stock Exchange (BSE) advanced by 339.24 points to 19,784.08, a two year high following continued gains in Realty, Oil and Gas and Banking stocks alongwith strong global cues. Optimism in the market was very high at the start of the New Year after a last-minute deal pieced together by US politicians to avoid the fiscal cliff.
The US Senate has passed legislation to block the impact of across-the-board tax increases and spending cuts that make up the fiscal cliff. However, the markets lost momentum towards the end of the week on profit booking and fall in global markets after Fed meeting minutes revealed disagreement on how long the central bank should buy bonds.
The Nifty of National Stock Exchange (NSE) moved past the psychological 6,000 mark, to 6016.15, rose by 107.80 points.
The market gained in four out of five trading sessions during the week. Small-Cap and Mid-Cap indices on BSE, both outperformed the Sensex.
The BSE Mid-Cap index increased by 3.12 pc and the BSE Small-Cap index surged by 3.72 pc.
India’s services sector grew at its strongest pace in three months during December.
Key benchmark indices edged lower by 18.13 points to settle at 19,426.71 on Monday, as US policy makers failed to reach an agreement over the weekend to avert the fiscal cliff due to begin taking effect from 1 January 2013. United States is the world’s biggest economy.
On Tuesday, the indices surged on the first trading session of calendar 2013 after the US Senate approved an agreement by the White House and Senate Republicans to keep the world’s biggest economy from falling off the fiscal cliff, as the Sensex edged up by 154.10 points at 19,580.81.