Sensex closes week up by 276 pts on revival of monsoon

The BSE benchmark Sensex rose by 276 points to end the week at 18,143.99 points on revival of monsoon, healthy auto sales and strong manufacturing and services sector data. Across the sector buying triggered by host of positive factors helped the benchmark Sensex to regain 18K-mark. Most of
the indices including consumer durable, IT, small-cap, mid-cap, Realty and Bank ended in green on renewed demand from investors and operators.

Sustained buying by Foreign Institutional Investors (FIIs), the main market mover, was the major factor for the Sensex despite continued selling by domestic funds.

Foreign Institutional Investors bought shares worth Rs 2,097.26 crore in the first four trading days of the the current month.

The revival of monsoon rains too further boosted the market sentiment as good rainfall would boost farm output and rural income, and lower food inflation.

Auto stocks firmed up after strong July sales reported by some auto companies. Banking segment continued to attract good buying support.

IT counters were in demand after the Nasdaq-listed firm Cognizant Technology Solutions announced stellar Q2 results, beating its larger peers by a huge margin and also revised its 2010 guidance significantly.

Food inflation declined marginally to 9.53 per cent for the week ended July 24 from 9.67 per cent in the last week.