Sensex, Nifty register best weekly gains in last 2-1/2 yrs

The stock markets broke strong four-week of losses as players flocked back to the bourses on some positive news overseas as well as fall in food inflation, sending both the indices to settle the week at two-week highs of 16,846.83 and 5,050.15 respectively and registered their best weekly gains since mid-July 2009.

Hopes of a concrete solution to the euro-zone debt crisis after a decision of a six world's major central banks cut dollar funding rates to keep money flow in global financial markets as we all International Monetary Fund was planning to bail out Italy to help contain the ongoing debt crisis, mainly buoyed the market sentiment world-wide.

Positive US jobs data on Thursday too helped the market recovery. All eyes are not set on the outcome of the December 9 summit where the European leaders expect bold solution on the debt issue.

Back home, slow down in country's gross domestic product (GDP) for the Q2 of 2011-12 and steep fall in food inflation for the fourth week in a row to 8.0 per cent for the week ended November 19 from 9.01 per cent in the last week that might gave some sign of relief to the government as also the central bank to pause the hike in the interest rates.

Buying was so strong that all 13 sectoral indices closed with sharp to marked gains between 1.82 per cent and 10.52 per cent with Metal, bankex, refinery, power and IT segments were the harbinger.

The Bombay Stock Exchange 30-share barometer resumed up and remained in positive terrain throughout the week to settle at 16,846.83, a net rise of 1,151.40 points or 7.34 per cent.

Previously, it had shot up by 1,240.70 points in a week of mid-July, 2009.