Mumbai: After three consecutive weeks of losses, a benchmark of the Indian equities markets soared 2.91 percent during weekly trade ended April 1.
The benchmark 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) gained 801.55 points or 2.91 percent during the weekly trade session ended April 1.
The Sensex had ended the truncated weekly (April 1) trade session at 28,260.14 points. For the previous weekly trade ended March 27, the BSE Sensex had closed at 27,458.64 points.
The Indian markets were closed on April 2-3 on account of Mahavir Jayanti and Good Friday.
Earlier, the Sensex had lost 802.44 points or 2.83 percent during the weekly trade session ended March 27.
The losses had continued till March 27, since the weekly close of March 13, when the S&P BSE Sensex plunged 945.65 points or 3.21 percent to its worst weekly fall in 2015.
"The gains were made after the markets factored in that the fourth quarter results will be subdued. Low crude oil, inflation and expectations of a rate cut also buoyed the markets,"Devendra Nevgi, chief executive of ZyFin Advisors, told IANS.
"The three consecutive weekly falls also made the markets more attractive for the long term investors. The correction has led to attractive pricing during the week gone by," Nevgi added.
According to Nevgi, the markets hase also factored in the likely-hood of no further rates cut from the central banks, however it is hopeful of a dovish policy statement.
The Reserve Bank of India (RBI) is scheduled to announce its first bi-monthly policy review for 2015 on April 7.
Dipen Shah, head of private client group research, Kotak Securities said: Â“Markets closed the truncated week with a near three percent gains, led by banking stocks, which outperformed the rest."
"Most of the sectors saw active buying, especially in mid-caps, with the exception of the IT (information technology) sector, where sentiment was marred by the weaker-than-expected guidance by HCL Tech," Shah added.
Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services said that the strong momentum in European market led my good PMI (Purchasing Managers' Index) provided the essential trend to India market during the weekly trade.
"Against expectation the long trading holiday did not negatively affect the market. Importantly, against the negative flow from DIIs (domestic institutional investors) during the month of March (expiry), DIIs have provided higher liquidity to the market including F&O (futures and options)," Nair added.
The markets made healthy gains during the three-session long week. The BSE Sensex had closed Wednesday's trade up 302.65 points or 1.08 percent. On Tuesday, it gained around 120 points. On March 30, the market closed with gains of 517.22 points or 1.88 percent .
The major Sensex gainers on Wednesday were: Sun Pharma, up 5.51 percent at Rs.1,078.55; Tata Motors, up 2.65 percent at Rs.564.55; State Bank of India (SBI), up 2.42 percent at Rs.273.45; ICICI Bank, up 2.41 percent at Rs.322.90; and Hindalco Inds, up 2.32 percent at Rs.132.15.
The losers were: Infosys, down 2.00 percent at Rs.2,172.25; Maruti Suzuki, down 1.53 percent at Rs.3,642.55, BHEL, down 1.34 percent at Rs.231.80, GAIL, down 1.09 percent at Rs.384.60 and Cipla, down 0.25 percent at Rs.709.45.