Mumbai: The pull back rally continued during the second week as BSE benchmark Sensex regained the 26,000-level and the broader Nifty ended slightly below the crucial 8,000-level.
The truncated week saw the bulls turning combative and finally took back the reigns of market momentum which was punctuated by the world's largest economy. The week saw the US Federal Reserve two day policy meet on critical decision over its nearly a decade old interest rate hike amid prevailing global slow down concerns and ripples from China.
The week started on gains in the midst of favourable macro-economic data of growth in Industrial Production (IIP), negative Inflationary trend and narrowing current account deficit (CAD), but, the sentiments were edgy underlined by uncertainty over decision on US rate hike.
Finally, the US Fed keeping its rate hike unchanged gave a much wanted respite to the whole of emerging financial markets which turned boisterous.
Domestic investors once again turned upbeat with optimism restored as hold in US rate hike gave more room for policy adjustments for emerging market like India including hopes of rate cut by RBI in its policy review this month and easing concerns over FII outflows.
The rupee gaining strength from its volatility also boosted the sentiment.
The market was closed on Thursday on account of 'Ganesh Chathurthi' festival.
The Sensex resumed higher at 25,706.87 hovered between a high of 26,471.82 and low of 25,531.07 before ending the week at 26,218.91, showing a gain of 608.70 points or 2.38 percent.
The CNX 50-share Nifty also resumed higher at 7,811.10 and climbed to regain 8,055.00 and low 7,761.85 before concluding the week at 7,981.90, revealing a gain of 192.60 or 2.47 percent.
