Indian stock markets ended the week significantly higher, with the Sensex gaining over 12% over the previous week's close. The rally was driven by strong global market cues as well as short covering due to futures and options contracts expiring. However, some analysts remain pessimistic and believe the rally is unsustainable and not based on economic fundamentals, predicting the markets will soon fall back. The top gainers for the week were Tata Steel, HDFC Bank, ICICI Bank, Reliance Capital, and SBI.

1. Indian equities end week on a high as global cues strengthen
Calcutta News.Net
Saturday 28th March, 2009 (IANS)
Mumbai, March 28 (IANS) Indian equities markets climbed several notches into the green in the
week just ended, enthused by strong sentiments across global bourses and short covering on
account of futures and options contract expiry Thursday. A key index closed 12.06 percent
higher than its previous weekly close.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended Friday at
10,048.49 points, with a gain of 1,081.81 points, or 12.06 percent, over the previous week’s
close of 8,966.68 points.
Similarly, the S&P CNX Nifty of the National Stock Exchange (NSE) gained 10.7 percent from
its last close to end at 3,109 points.
The Sensex hit an intra-week high of 10,127 points and a low of 9,040, while the Nifty hit an
intra-week high of 3,123 points and low of 2,807.
The BSE midcap index ended 6.27 percent higher than its previous weekly close of 2,934.16
points, while the BSE smallcap index was up 3.97 percent.
Cabinet secretary K.M. Chandrasekhar was quoted as saying the capitals markets had sensed an
economic recovery and hence the rally.
Market analysts, however, did not share his optimism.
“This might sound pessimistic but sadly, the rally is not sustainable. I wish it was a permanent
recovery, but it’s not,” said Jagannadham Thunguntula, equity head at SMC Capitals.
“The futures and options closing helped push the Sensex upwards and global cues helped, but
markets are still being driven by speculation rather than any sound investment strategy,” he
added.
“They will soon fall back,” Thunguntula contended.
Markets started the week on a good note as news came in that the Barrack Obama administration
in the US was planning to buy $1 trillion worth of toxic assets, which sent most bourses across
the world spiralling.

2. The Sensex soared 5.1 percent to shut shop at 9,424.02 points - a rise of 457.34 points Monday.
Nifty gained 4.73 percent from its last close to end trade at 2,939.9 points.
The rally lost steam Tuesday as investors took advantage of higher valuations and booked profits
in select stocks, leading to a key index sliding from the day’s high at day’s close.
The Sensex closed at 9,471.04 points - a marginal rise of 47.02 points or 0.5 percent.
However, the Nifty closed lower, shedding 0.04 percent from its last close to end trade at 2,938.7
points.
A surprise late rally resulted in the Sensex surging by 2.08 percent Wednesday to end trade at
9,667.9 points - a rise of 196.86 points.
The Nifty also closed higher, gaining 1.55 percent from its last close to end trade at 2,984.35
points.
Markets gathered momentum Thursday as traders scampered to cover their positions, resulting in
the Sensex shutting shop above the psychologically important 10,000-mark, after about two
months.
It closed at 10,003.1 points - a rise of 335.2 points or 3.47 percent, it highest close since Jan 6.
The Nifty gained 3.28 percent from its last close to rule at 3,082.25 points.
Friday saw markets inch upwards with the Sensex ending trade 0.45 percent higher than its
previous close, after fluctuating around its previous closing figure through most part of the day.
The Sensex shut shop at 10,048.49 points - a rise of 45.39 points, while the Nifty gained 0.83
percent from its last close to rule at 3,107.8 points.
The top gainers on the Sensex were Tata Steel, up 26.6 percent; HDFC Bank, up 19.3 percent;
ICICI Bank, up 19.2 percent; Reliance Capital, up 18.8 percent; and SBI up 17.8 percent.
Data with market watchdog Securities and Exchange Board of India (SEBI) for four days of the
week showed that foreign funds were net investors in equity, even though they were heavy
sellers in the debt markets. Data for Friday was not available with the regulator.
Their net investment during the week amounted to $337.7 million.