THE WEEK THAT WAS - Sensex gains 147 points

The Sensex maintained its winning streak, as buying continued at higher levels. Strong FII-inflows and revision in earnings estimates by brokerages have fuelled the latest bull-run on the bourses.

For the week ended Friday (17 November), the Sensex gained 147 points (1.10%), to settle at 13,429.48

The S&P CNX Nifty advanced 18 points (0.47%) for the week ended Friday (17 November), to settle at 3,852.80.

On 13 November, the Sensex jumped 116.09 points to 13,399 as select blue-chips were in demand. It gained 26.50 points to 13,425.50 on 14 November, as buying continued. On 15 November 2006, the Sensex has gained 43.87 points, settling at 13,469.37 on demand for banks and cement makers.

On 16 November 2006, the Sensex finished 36.52 points higher, at 13,505.89, on buying interest for banking and cement stocks.

Sensex lost 76.41 points on 17 November to settle at 13,429.48 on profit booking. It had struck an all time high of 13,678.04 in opening trade on that day.

Reliance Industries lost 2.35% to Rs 1,258.10 for the week, after two brokerages downgraded the stock to `underperform’ from market performer citing stretched valuations and weakening fundamentals.

TCS rose 1.91% for the week to Rs 1,091, amid reports that it had bagged a $100 million contract in the US. On 14 November 2006, block deals for an aggregate 85.05 lakh shares were executed in the scrip on BSE, at an average Rs 1,059 in early trade, constituting 0.8% of TCS’ equity capital of Rs 97.86 crore (face value Re 1 per share). Foreign fund HSBC Global purchased the shares from promoters, who hold 84% in the company.

Cellular services major Bharti Airtel advanced 6.89% during the week, to Rs 582.20. It had hit Rs 586.95, an all-time high on 17 November. Bharti Airtel said on Monday it was roping in Microsoft Corporation, to offer software and other services to small and medium scale businesses in India. On 15 November, it replaced TCS as the fifth largest company in terms of market-cap.

Gujarat Ambuja Cements rose 1.37% for the week to Rs 135.65. On 16 November, two big deals of 2.5 crore shares each were struck in the counter, at an average Rs 138.75 per share. Swiss cement maker Holcim, which presently holds 15.6% in Gujarat Ambuja Cements, acquired an additional 3.6% stake from the promoter group. The block deals with a turnover of Rs 694 crore, constituted 3.6% (5 crore shares, 2.5 crore shares each) of its equity capital of Rs 272.02 crore (face value Rs 2 per share).

Bank shares surged on easing interest rate worries. RBI on Tuesday said the recent fall in global crude oil prices should help ease inflation pressures.

HDFC Bank gained 8% for the week, to Rs 1,122.10. On 16 November, it struck an all-time high of Rs 1,150. ICICI Bank rose 4.63% to Rs 877. On 16 November, it struck an all-time high of Rs 925 on Reserve Bank of India's permission for new branches and ATMs. SBI jumped 7.86% during the week to Rs 1,229. It had also surged to an all-time high of Rs 1,241 on 17 November.

Airliners rose on reports that they are to raise airfares between 3 - 5%. Reports also add that the number of low-priced tickets available on each flight is also likely to be reduced as a cost-cutting measure. Jet Airways rose 4.82% to Rs 652.10, while Deccan Aviation jumped 38.23% to Rs 149.35, during the week.

Thermax rose 5.15% to Rs 367 during the week following strong Q2 results. The company reported 38.6% growth in net profit for Q2 September 2006 to Rs 35.08 crore (Rs 25.31 crore). Total income has risen 57.6% to Rs 491.05 crore (Rs 311.43 crore). The company has a robust order-book position with a order backlog of Rs 2,973 crore on a consolidated basis as on 30 September 2006, which is 142% higher from that of last year.

FIIs have been the key drivers of the recent rally. They were net buyers to the tune of Rs 2,302 crore for the first two days of the week.

Mutual funds made an inflow of Rs 150.59 crore in the first three days of the week.

On 16 November, the Bank of Japan left its monetary policy unchanged on Thursday as widely expected.

India’s wholesale price index rose to 5.30% for 12 months ended 4 November, higher than the previous week's 5.09% due to an increase in the prices of food articles and manufactured products.

The blue-chip Dow average achieved its longest winning streak since August, rising 54.11 points on Thursday to finish at a record 12,305.82.