Only Tuesday was the weak day for the market due to Syria tensions, but rest of week was extremely strong. Both benchmarks surged around 6 percent in three sessions and gained more than 3.5 percent this week, largely driven by slew of measures from new RBI governor Raghuram Rajan to revive the economy.
The week was quite strong for the market with the Sensex gaining 650 points on the back of measures for banks & rupee by new RBI governor Raghuram Rajan and hopes of fuel price hike this weekend.
Tuesday was the only bad day for the market during the week with the Sensex losing 652 points due to Syria tensions, but rest of the week was extremely strong. Both benchmarks gained more than 3.5 percent this week and surged around 6 percent (1035 points on the Sensex) in last three consecutive sessions.
Back to today's session, the market staged a smart performance in afternoon trade with the equity benchmarks rising over 1.5 percent after seeing a consolidation in morning. Hopes of hike in fuel price and likely change in spectrum pricing were the drivers today.
The Sensex was up 290.30 points to close at 19270.06, continuing its upward journey for the third consecutive session. The Nifty rallied 87.45 points to 5680.40.
Experts believe the Nifty may cross 5700 with the current environment, but the rally is short-lived as the fundamental problems are not solved yet.
"We may play between 5,600 and 5,700 for few days, but broadly this settlement should be in the trading range of 5,450 and 5,650," Atul Badkar, VP (Institutional Equities), Derivatives Desk, Edelweiss Securities says.
Meanwhile, Arvind Narayanan of DBS Bank says that the recently announced India-Japan currency swap is likely to give a much-needed boost to the Indian equity market.
The Indian and Japan government last year had announced the swap worth USD 15 billion, which was today enhanced to USD 50 billion today in the G-20 summit.
"The moves on the currency are probably short-termed euphoria of Dr Rajan’s announcement. The market is slightly happier and confident about what is happening. But I do not think this is a sustainable change in trend because market would wait for FOMC meet on September 18," he adds.
Meanwhile, the Rajan effect pushed the rupee around 240 paise higher in three sessions, and gained 361 paise from its record low of 68.85 per dollar touched on August 28. Today it closed at 65.24 against the dollar, up 77 paise from previous close.
ICICI Bank was the leader with 7.37 percent gains on top of a 9 percent rally in previous session. HDFC Bank and HDFC gained more than one percent while top lender State Bank of India was down 0.2 percent.
Shares of PSU oil & gas companies were on fire today on hopes of diesel price hike soon. Experts believe the under-recoveries of oil marketing companies increased significantly in the recent times due to rupee depreciation and higher oil prices, so the oil price hike is imminent. BPCL, HPCL and IOC gained 4-6 percent while ONGC shares rallied 7 percent.
Telecom stocks were in bull grip on hopes of revision in spectrum pricing. Bharti Airtel shares gained 5.5 percent after Nomura has upgraded the stock to buy with a target price of Rs 360 while Idea Cellular and Reliance Communications were up 2.5 percent.
Among others, L&T, Cipla, Sun Pharma, NTPC, BHEL and Jindal Steel surged 2-4.5 percent.
Sesa Goa closed 2 percent lower as the lock-in period pursuant to merger ended Thursday. Nearly 210 crore fresh shares hit the market today on the back of Sesa-Sterlite merger.
Shares of country's largest coal mining company Coal India dropped 2 percent on profit booking after a rise of 13.4 percent in previous five sessions.
Stocks like UB Holdings and MMTC rallied 10 percent after the exchange revised circuit limit from 5 percent to 10 percent while Wockhardt, BGR Energy and Gitanjali Gems surged 3-11 percent after they shifted to the 20 percent circuit limit from 10 percent earlier.
Advancing shares outnumbered declining ones by 1301 to 986 on the Bombay Stock Exchange.
Indian markets will be shut for Ganesh festival on Monday.