Indian equities welcomed the new year (2009) on a bullish note. Midcap and Smallcaps showed upbeat reaction all through the week.

The 30 share index, Sensex gained 629.3 points to 9,958.22 during the week, which ended on January 02, 2009. In contrast, the broad based NSE Nifty made 189.5 points to 3,046.75 during the same period.

During the week, Mid-cap stocks recorded 284.5 points to 3,391.18, while Smallcap shares zoomed 321.91 points to 3,870.45.

The BSE Sensex crossed 10,000-notch on Friday (January 2) on the back of speculation of administration declaring another stimulus package.

The Union government announced second stimulus package in order to encourage the decelerating financial system. The major focus area of this package was to liberalize the external commercial borrowings (ECB).

For the week ended Dec 20, 2008, India’s benchmark wholesale price index (WPI), inflation declined further to 6.38% as against 6.61% a week earlier.

Major gainers during the week in the sectoral indices included Metal, which increased 12.34%, Realty rose 12.34%, Capital Goods zoomed 10.40%, Power gained 9.23% and BSE Consumer Durables climbed up 8.16%.

The gainers’ list during the week included Satyam Computer Services (31.03%), Reliance Communications (22.12%), Jaiprakash Associates (18.67%), Reliance Energy (16.26%), and Ranbaxy Laboratories (15.35%).

On the other hand, Hindustan Unilever (1.96%) was the single biggest loser in the Sensex over the week.

While commenting on the market situation, stock market analyst, Vishwas Agarwal said that until Nifty is above 2,976 level, stock market is in absolutely gainful trading zone with major target of 3,076-3,176-3,276.

The stimulus package plus liquidity and interest rates eased by RBI will help the market to boost up and achieve the said level.

Mr. Agarwal is optimistic upto January 12 to January 14. After that he is looking for correction because of company results that will start to come out.

“So traders should be smart enough during this period to make profit,” he said.

He advised to read stimulus package and trade accordingly next week in beneficial way.