Indian equities erased all its previous losses and closed the week positively on Friday, August 29 because of decline in weekly inflationary figures and encouraging signals from US and Asian markets that supported the market despite reduction in Q1 GDP growth.

Midcap and smallcap stocks also backed the sharp run. 

The BSE Sensex ended at 14,564.53, up 516.19 points, while the broad-based NSE Nifty surged 146.00 points to end at 4,360.00.

Banking and realty stocks showed a smart rally and gained 6.27% and 5.10% respectively. PSU, metal and power indices ended up by over 3 per cent.

The overall market breadth was sharply optimistic as it saw 1,851 advancements as against 790 declinations.

Mr. P K Agarwal, president- research, Bonanza Portfolio, stated that inflationary data this week, was the pleasant positive surprise for the stock market.

Worldwide signals were also positive, resulting in markets opening with a gap up on Friday.

Moreover, Q1 GDP growth came at 7.9 percent that was acceptable to the market. At last Nifty touched a high of 4,368 and ended the week at 4,360.

Banking, followed by SBI, PNB, BPCL & Rel Infra headed the Bulls charge. Cairn India was the lone heavy weight loser.

Giving his opinion on the coming week’s market condition, Mr. Agarwal 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.”