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In a buoyant week for the market during which the RBI signalled the end of interest rate hikes, the BSE Sensex and NSE Nifty were up over 6 per cent each. Despite a flat Muhurat trading session, investors were gung-ho through the latter half of the week. Adding to the euphoric investment climate was the recently concluded European Summit during which member states edged closer on measures to combat the debt crisis.
The broader BSE500 index ended the week higher by around 5 per cent. The BSE Metals pack was a strong performer through the week gaining 9.3 per cent as expectations of a bounce back in commodity prices buoyed investor sentiment.
Among the BSE 200 constituents, the stock of aluminium and copper major Hindalco was the top performer gaining 17 per cent through the week. Despite a drop in second quarter profits owing to cost pressures and derivative losses, Sterlite Industries was a strong performer adding 16 per cent through the week.
Action on the Greek debt crisis front could also mean a clearer outlook for Tata Steel's European operations. The stock was up 11 per cent through the week.
The stock of DB Realty shot up 26 per cent during the week on speculation of a stake sale by the promoters, even as the company denied such reports.
Another notable gainer through the week was Tata Motors , which closed the week with a gain of 16 per cent. Reports indicated that the company planned to raise funds through the ECB route. The BSE Auto index gained around 8.2 per cent by the end of the week. The stock of Ashok Leyland gained 11 per cent by the week's end. Other strong performers in the space included the stocks of Hero Motocorp and Bajaj Auto which gained five and seven per cent respectively through the week.
The RBI savings account deregulation measures did dampen the festive spirits in the banking space for a while. The BSE Bankex gained 2.5 per cent through the week, underperforming the broader BSE 500.
Despite hiking its deposit rates by two per cent, YES Bank fared the best on the bourses rising by 14 per cent through the week. With a relatively lower percentage of its deposits accounted for by savings deposits, the bank will be less impacted by the RBI move. A better-than-expected September '11 quarter performance by IDBI Bank and decent set of results from Kotak Mahindra Bank led to their shares rising by 9 per cent by the close of the week.
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