The 30 share index, Sensex gained 333.88 points to 9,634.74 in the week ended Feb. 13, 2009. On the other hand, the broad based NSE Nifty gained 196.25 points to 2,874.80 in the same period.

The bulls showed strong performance on three of the five trading sessions, due to fairly strong trend on the worldwide stock markets.

On days when global signals were not that supporting, investors were seen buying bluechip stocks from auto, capital goods, realty and banking sectors amid hopes of a cut in key bank rates and some tax chops and stimulus from the government through the forthcoming interim Budget

During the week, mid-cap stocks gained 130.15 points (4.51%) to 3,012.95, while small-cap shares soared 116.34 points (3.55%) to 3,395.58.

India’s benchmark index BSE Sensex belled the week positively with a gain of 58.14 points, at 9,359 on Monday in proportion to worldwide markets on hopes of a massive stimulus package in US.

Afterward, the Sensex moved upwards on continued buying witnessed in index pivotals owing to estimates of GDP numbers declared by the government. Finally, the BSE Sensex ended the day at 9,583.89 after making a gain of 283.03 points, and the Nifty closed more than 75 points up.

On Tuesday, the 30-share index Sensex belled the day on a flat note with positive bias. Later it fell into negative on continued selling witnessed across board and also because of weak opening of European market. The Sensex also touched a low of 9,510.50, but it maintained itself and moved up into the positive zone.

Worldwide signals were not cheering but expectations of some strong fiscal incentives from the interim Budget actuated a few rounds of buying in realty, bank, capital goods and auto stocks on Tuesday and brought the Sensex and Nifty up by around 64 points and 15 points respectively.

In the mid-week, stock markets presented a downward rally ending marginally lower on Wednesday. The government’s decision to modify certain FDI norms and hearsays that the administration may consider removing the securities transaction tax contributed to the recovery. Finally, Sensex and Nifty ended after posting marginal losses.

Easing inflationary data declared on Wednesday accompanied by declaration of US billion stimulus package failed to lift the market outlook on Thursday. The bears held sway on Thursday as weak worldwide markets and depressing economic facts broke the sentiment. At last, Sensex closed the day after losing 152.71 points at 9,465.83.

India’s benchmark wholesale price index (WPI), inflation dropped below 5%. For the week ended Jan 31, it stood at 4.39% as against 5.07% during the previous week.

Figures of Index for Industrial Production (IIP) for India were also announced on Thursday. IIP for the month of December 2008, fell marginally to 2% as compared to 2.4% (revised) during the previous month (November 2008).

On the last trading day of the week (Friday), the stock market ended positively as several stocks from metal, capital goods, realty, power, auto and banking sectors recorded sharp gains. The Sensex gained 169 points and the Nifty closed with a gain of 55 points on account of positive global cues, backed by firming trends of Asian markets.

Strong global markets, expectations of some tax sops from the interim Budget to be announced on Monday (Feb 16), and expectations of further interest rates cut and another round of stimulus from the government contributed to the sharp increase.

Railway Minister Lalu Prasad Yadav, presented the interim Rail Budget in Parliament, and said railways have reported a cash surplus at Rs 900 billion during the last 5 years, and he has decided to utilize Rs 700 billion of the surplus to improve rail efficiency.

US Congress has sanctioned President Barack Obama’s $787 billion stimulus package designed to revitalize the battered American financial system through tax cuts and creation of employment.

The major gainers of the week in the sectoral indices were realty, which gained 12.55%, capital goods surged 7.88%, auto zoomed 6.72%, power surged 5.48% and BSE conusmer durables increased 4.81%.

IT (1.38%), FMCG (0.49%) were among major losers in the sectoral indices over the week.