Sensex jumps nearly 7%

Expectations of a second government stimulus package for the economy, hopes of further rate cuts by the central bank and buying by the foreign institutional investors, helped the market reverse losses of the preceding week. The market gained in four out of the five trading sessions of the week ended 2 January 2009.

The BSE 30-share Sensex rose 629.30 points or 6.75% to 9,958.22 in the week. The S&P CNX Nifty rose 189.50 points or 6.63% to 3,046.75 in the week.

The BSE Mid-Cap index gained 284.50 points or 9.16% to 3,391.18 and the BSE Small-Cap index jumped 321.91 points or 9.07% to 3,870.45 in the week. Both these indices outperformed the market.

The barometer index BSE Sensex is down 11,248.55 points or 53.04% from its all-time high of 21,206.77 struck on 10 January 2008.

The BSE Bankex (up 8.88% to 5,674.31), the BSE Power index (up 9.23% to 1,908.15), the BSE Capital Goods index (up 10.4% to 7,286.83), the BSE Metal index (up 12.34% to 5,561.24), the BSE Realty index (up 12.34% to 2,472.51) outperformed the Sensex in the week.

The BSE IT index (up 6.27% to 2,284.20) and the BSE Auto index (up 6.65% to 2,521.09) underperformed the Sensex in the week.

FII inflow in December 2008 totaled Rs 1319.10 crore. FIIs pulled out a massive Rs 52,998.70 crore in calendar year 2008, as against an inflow of a huge Rs 71,486.50 crore in calendar year 2007.

Expectations of a second stimulus package, recovery in Asian markets from early fall, firm European markets and higher US index futures boosted the the market on Monday, 29 December 2008. The BSE 30-share Sensex gained 204.60 points or 2.19% at 9533.52.

Interest rate sensitive sectors led the rally on the bourses on Tuesday, 30 December 2008, on hopes of further cut in interest rates by the central bank and on a likely second government stimulus package for the economy. The BSE 30-share Sensex advanced 182.64 points or 1.92% at 9716.16.

Profit booking after two-day gains pulled key benchmark indices lower on the last trading day of 2008. The BSE 30-share Sensex lost 68.85 points or 0.71%, at 9647.31 on Wednesday, 31 December 2008.

Buying in blue-chip shares in the interest rate sensitive banking, auto and realty sectors propelled the key benchmark indices higher on the first day of the new calendar year 2009. The BSE 30-share Sensex advanced 256.15 points, or 2.66% on Thursday, 1 January 2009

Profit booking in IT pivotals capped gains on the bourses in what was a choppy trading session on 2 January 2009. Media reports that the government will announce a second stimulus package at about 18:00 IST to help shore up an economy, and firm global markets supported the domestic bourses. The BSE 30-share Sensex gained 54.76 points or 0.55% to 9,958.22.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries gained 5.93% to Rs 1,283.90 after its unit Reliance Petroleum started processing crude at its 5.80 lakh barrels per day refinery

India's largest private sector bank by net profit ICICI Bank rose 12.74% to Rs 471.20. The bank, on 31 December 2008, cut the benchmark advance rate, or the rate that it charges its top customers, to 16.75% from 17.25% previously. It also cut rates for home loans by 50 basis points. The rates on term deposits have been slashed between 50 to 75 basis points for various maturities.

India's fourth largest IT firm by sales Satyam Computer Service rose 31.2% to Rs 177.55 on buzz of a likely change in management after a recent aborted to bid buy stake in firms in which the management held stake.

India's second largest telecom services provider by sales Reliance Communication rose 22.12% to Rs 250.35 after the company announced a nationwide rollout of GSM-based cellular services.

India's largest electric equipment maker by sales Bharat Heavy Electricals rose 8.31% to Rs 1,408.25 on a recent large order win.

India's largest motorbike maker by sales Hero Honda Motors fell 0.19% to Rs 792.75 on posting a 10% fall in sales in December 2008 over December 2007.

Infosys (up 1.93% to Rs 1,130.95), HDFC Bank (up 4.44% to Rs 1,015.80), Tata Consultancy Services (up 5.34% to Rs 497.30), Wipro (up 6.98% to Rs 242.90), State Bank of India (up 6.89% to Rs 1,330) rose in the week.

India's exports declined by 9.9% in November 2008, posting negative growth for the second month running due to a slowdown in major global markets. Exports dropped to $11.5 billion in November this fiscal, from $12.7 billion a year ago while imports grew by 6.1% to $21.5 billion.

Inflation based on the wholesale price index (WPI) rose 6.38% in the year through 20 December 2008, lower than previous week's 6.61% rise, data released by the government on 1 January 2009, showed.