Indian equities canceled all its previous losses and profited more than 163 points in the week ended August 29, on the back of lower inflation figures and moderate decline in India’s growth that led to the positive outlook.

The market opened the week positively but it slipped during the mid-week on global fears but the decline in inflation rate assisted stock markets to recover lost points.

The sectoral picture showed that major gainers during the week included Bankex (5.31%) followed by IT (3.37%), Realty (1.02%) and Power (0.23%).

The Sensex closed the week at 14,564.53 after gaining 163.04 points as against the previous week’s closure.

Similarly, the 50-share index, NSE Nifty gained 32.55 points to end at 4,360 from last week’s close.

Top Losers for the week included ACC (8.36%), SBI (7.68%), Satyam (6.19%), Grasim (6.19%) and NTPC (6.11%).

Gainers’ list included Satyam (8.66%), HDFC Bank (6.91%), Mahindra & Mahindra (5.27%), SBI (4.26%) and ICICI Bank (4.19%).

For the week ended Aug. 16, 2008, Inflation decreased marginally to 12.40%, as compared with 12.63% during the last week because of rates of primary articles remained unaltered and a drop in oil prices.

Indian financial system expanded by a slower 7.9% during the first quarter of the recent year, but it was on expected lines as lofty interest rates hit key growth engines, mainly the manufacturing segment.

BSE Midcap index gained 0.26% to stand at 5,742.29, while Smallcap index dropped 0.49% to 6,891.64 in the week.

P K Agarwal, president- research, Bonanza Portfolio giving his opinion on the next week`s market, said, “Markets may see higher levels, in the week starting 1 Sept 08. Nifty can go upto 4,400/4,420 levels, where market may face resistance. On down side 4,300 can provide support.”

Stock market analyst Vishwas Agarwal said that BSE 14,555 is a crucial level to hold the stock market. Below this said level, stock market is weak upto 14,350 and 14,150.

He mentioned that 14,786 level is the vital level to come out of bear and volatile markets. Until this point is not crossed, investors would face volatility and stock specific movement.

“ADAG group stocks and banking stocks both private and PSU were ruling on Friday. But I feel one must book profit on every rise until above given safe level of 14,786 doesn’t come,” Mr. Agarwal added.