Market snaps 2-week losing streak, up over 110 pts

The stock market snapped a 2-week losing streak with the benchmark Sensex recovering by over 110 points during the week under review triggered by sustained capital inflows amid early arrival of monsoon rains in Kerala.

Besides, auto, refinery and metal segments rest all sectoral indices closed the week with sharp to marginal gains between 3.61 per cent and 0.73 per cent.

The main market mover, Foreign Institutional Investors (FIIs) were net buyers throughout the week and they bought shares worth Rs 2,365.56 during the week, taking a total to Rs 4,023.26 in seven straight sessions since May 26, including provisional data of June 3.

The market shrugged off slow economic growth data in the fourth quarter ended March announced by government on Tuesday.

The Gross Domestic Product (GDP) grew by a slower-than-expected 7.8 per cent during January-March, as against 9.4 per cent in corresponding period of the previous year.

However, for the entire financial year, GDP improved to 8.5 per cent from 8.0 per cent in 2009-10.

Brokers said investors bought stocks available at lower levels and partly because they felt that the apex bank might be less aggressive on tightening monetary policy after the slowdown in economy in Q4 and also fall in food inflation to 8.06 per cent for the week ended May 21 from 8.55 per cent in the preceding week.

Higher export too aided the market sentiment. Exports in April grew 34.42 per cent , over the same month last year, while imports picked up 14.13 per cent.