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RBI's interest rate cut keeps Sensex hopes alive.

The index closed at 28,334.63 points, while it had ended trade at 28,046.66 points points on November 14.

Mumbai -- With hope against hope of seeing the central bank cut key interest rates and following an encouraging set of inflation and factory output numbers, Indian equities markets made healthy gains of more than one per cent in weekly trade.

The benchmark Sensex was up by 1.02 per cent or 287.97 points in the week ended November 21 from its previous weekly close on November 14.

The index closed at 28,334.63 points, while it had ended trade at 28,046.66 points points on November 14.

In the week ended November 14, the benchmark had made gains of 0.63 per cent or 178.03 in the weekly trade from its previous close on November 7.

The index closed at 28,046.66 points, while it had ended trade at 27,868.63 points points on November 7.

On Monday, the benchmark index touched a new high of 28,205.71 points -- surpassing its previous high of 28,126.48 points reached on November 12 and closed trade at 28,177.88 points -- a new record closing high, up 131.22 points or 0.47 percent from the previous day's close of 28,046.66 points.

However, on November 18, the benchmark index closed flat -- down 14.59 points or 0.05 per cent -- as information technology stocks lost marginally.

The index did manage to touch a new intraday high of 28,282.85 points, surpassing its previous record of 28,205.71 points hit on Monday. It closed trading at 28,163.29 points. After touching consecutive highs, the benchmark index closed Wednesday's trade down 130.44 points or 0.46 per cent. The index though touched a new intraday high of 28,294.01 points. On November 19, it closed the trading at 28,032.85 points, down 130.44 points or 0.46 per cent. It was a flat scene again on November 20 with the benchmark index closed trading flat at 34.71 points or 0.12 per cent at 28,067.56 points.

On Friday, the benchmark index made good on its prior losses and gained 267.07 points or 0.95 per cent up after hitting a record high of 28,360.66 points. It closed trading at 28,334.63 points.

According to market analysts, every sign made by the central bank will be watched anxiously and the near-to-medium-term trading trends will depend on that.

"We expect markets to remain focused on the upcoming RBI [Reserve Bank of India] meeting on December 2. Any dovish signal from the RBI will buoy sentiments within the economy and lead to further improvement at the ground level," said Dipen Shah, head of private client group research at Kotak Securities. The supportive global cues, expectations of improvement in growth rates and expectations of an early interest rate cut also kept foreign investor's clued to the Indian markets. For the week ended November 21, FPIs massively bought stocks worth Rs1,675.75 crore or $271.65 million, according to data from the National Securities Depository Limited.

They had sold only Rs412.23 crore or $66.37 million worth of equity in the week under review.

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Publication:Khaleej Times (Dubai, United Arab Emirates)
Date:Nov 23, 2014
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