Jammu, Dec 9: It was an extremely volatile week for the markets but indices managed to close in the green with buying support coming from realty, pharma and IT stocks. Three out of the five sessions during the week ended in green as foreign institutional investors turned out to be net buyers. Thus, for the week ended December 7 the sensex gained 3.1 per cent while the Nifty put on 3.7 per cent.
The week began on a positive note with the sensex gaining 240 pts and the Nifty gaining 102 points on Monday.
Tuesday witnessed a reversal of sentiments as selling pressure in banking, software, and telecom stocks sent indices into red. The sensex shed 74 points, while the Nifty lost 7 points.
Stocks from the energy sector turned the tables back on Wednesday, as the sensex closed 209 points higher while the Nifty gained 82 points.
Despite a firm start and strength across global markets on Thursday, the indices failed to retain the momentum as occasional bouts of profit booking took a toll on the index heavyweights. Except telecom and banking, stocks were in favour while selling was witnessed in commodity, auto and pharma stocks. The Sensex closed 58 pts higher while the Nifty gained 15 pts.
After opening at a firm start on Friday on the back of global cues, the benchmark indices failed to sustain the momentum as profit booking dragged them below the 20,000 mark. The Sensex closed at 19,966 up by 170 pts while the NSE Nifty closed at 5,974 up by 20 pts.
On the institutional activity front, between November 30 and December 6, FIIs were net buyers to the tune of Rs 35 billion, while mutual funds bought equities worth Rs 9 billion.
An expert in capital market said, "With the sensex swinging between gains and losses on a daily basis, investors with a focus on business fundamentals are left wondering. Even if the prices go all over the place due to non-value reasons they should stick to value reasons. Wild swings in market prices far above and below business value do not change the final gains for owners in aggregate in the end, investor gains must equal business gains."
"I have managed good profits over the past week on pharma and IT stocks. One has to be careful enough to pick the right stocks that would provide the investor good yields," Wajahat Nazki, an investor from Jammu said.