Healthy buying by foreign investors on the back of expected further reforms led to the Indian equities market making gains in the week ended
"Markets rose by more than 0.5 per cent on Thursday and by more than three per cent for the week on the back of expectations of further reforms from the government and reduced concerns on the geopolitical situation across the world," said
The benchmark index gained 0.75 per cent in the week ended
The Indian markets, which remained closed for trading on Friday for
FIIs had turned net buyers on Thursday to the tune of
Domestic institutional investors, including banks, development finance institutions, insurance and mutual funds, bought net stocks worth
"Over the medium to long term, we expect incremental reform initiatives from the government to drive markets. Geopolitical issues on the global front and progress of monsoons can be the near-term triggers," Shah added.
Meanwhile, expectations of a rate cut by the central bank in the next monetary policy review received a setback as the country's retail inflation rose to a two-month high, amid slower growth in factory output.
However, another market analyst said that given the reform buzz and positive sentiment shown by FIIs in investing in
"The most important thing is that the reforms buzz be implemented on the ground. We are comfortable with the markets move in the long term. There might be certain volatility in the short-term but the over all macro-economic indications show a positive outcome in the long term with
Week-wise, the S&P BSE sensitive index closed Monday trade 190.10 points or 0.75 per cent up at 25,519.24 points.
The markets had closed at 361.53 points or 1.42 per cent higher in Tuesday's trade even as information technology and technology, entertainment and media stocks fell.
This was the biggest daily gain since
The markets closed flat on Wednesday — only 38 points or 0.15 per cent up — even as capital goods, consumer durables and bank stocks fell. It closed at 25,918.95 points.
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