Sensex pierces 20k, Nifty tops 6k

The all-time peaks of January 2008 appear within striking distance. Even global markets seem to be resilient in the face of bleak prospects for the global economy. A flood of FII money, and stronger than expected domestic economic data have made India among the best performers. The liquidity deluge in September propelled the BSE Sensex and the NSE Nifty higher by 2.3% each during the week.



Shares of FMCG companies witnessed a smart rally during this week as reports of price hikes attracted investors towards these companies. Robust growth in auto sales in August and optimism ahead of the festival season continued to generate interest for Auto stocks. But, profit booking pulled down Real Estate and Oil & Gas stocks.

In US, the Federal Reserve left key interest rates unchanged near record low. The FOMC didn’t announce any asset purchase plan but said it is ready to do more to stimulate a sluggish US economy. However, disappointing weekly jobless claims data, downbeat economic statistics from Europe and fresh worries over sovereign debt problems in peripheral euro-zone dragged the world markets lower. In Asia, main markets led by China had a truncated trading week.