Sensex, Nifty gains despite economic slowdown

The Bombay Stock Exchange benchmark Sensex bounced by 2.71 per cent in the week under review as moderation of economic growth and FII pull out in November failed to check the bull run. Investors acted on some positive factors including strong global cues and clearance of Rs 16,000-crore rights issue of the country's largest lender State Bank of India (SBI). Expectations of another rate cut, largely prompted by comments from the US Federal Reserve officials indicating such a move in its meeting on December 11, also had a positive impact on the market sentiment. In the week to December 1, the BSE 30-share index moved in the range of 19,424.99 and 18,884.20 points before closing the week at 19,363.19, a net rise of 510.32 points over previous weekend's close of 18,852.87.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) also spurted by 154.15 points or 2.75 per cent to close the week at 5,762.75 from last weekend's close of 5,608.60. Asian markets remained strong throughout and registered sharp gains. Nikkei was up 5.32 per cent, Kospi 7.51 per cent, Straits Times 5.87 per cent and Taiwan Weighted 2.93 per cent over last week.
The market was highly volatile in the week due to the expiry of November contract in derivative. Nifty futures witnessed a healthy rollover of 76 per cent to December series and the overall rollover in the F&O segment was nearly 72-75 per cent. Considering high rollover in derivatives, the market is likely to remain bullish in December, market players said.
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