Stock markets gain over 2% this week on hopes of more reforms

Mumbai - The benchmark BSE Sensex settled at a four-week high while NSE Nifty surged to near 8,400 levels this week on hopes of much-awaited sectoral reforms and encouraging manufacturing output data for December.

Only two-days of the week witnessed a tepid trading hindered by weak-sentiment over political uncertainty in Greece as well as liquidity drench following lack of major foreign funds inflow due to New Year holidays in most of the global market.

However, investors sentiments underpinned by optimism over the government growth oriented economic reforms, which was safeguarded by cabinet approval of taking ordinance route to acquire land in key sectors.

The two-day meet of banking industry to revitalise the financial sectors also provided support on the last day of week.

Also, a significant improvement in HSBC Manufacturing Purchasing Managers' Index (PMI) for December also provided a major push to stocks on the last trading day of the week.

FPIs turn-around from sellers to buyers further boosted the sentiment. They injected USD 101.91 million on the first four days of the week, as per Sebi data.

Shares from all sectors saw hectic buying, with capital goods, consumer durables, metals, power, banks, realty, auto, fmcg sectors leading the pack that was well supported by shares from mid-cap and small-cap companies which outperformed the sensex.

The BSE 30-share barometer resumed the week higher and gradually moved up further to a high of 27,937.47 before settling at four-week high of 27,887.90, showing a gain of 646.12 points or 2.37 percent. PTI