Mumbai (Lok Satya). Amid mixed cues from the global level, the increase in domestic vehicle sales and the hope of a return to economic activity, the stock market reached a new peak on the strength of buying last week and the market is expected to remain bullish for the next week as well. Chances are being raised but small investors have been advised to be cautious.
During the period under review, the BSE 30-share Sensitive Index Sensex stood at 54277.72 points, crossing the level of 54 thousand points with a weekly gain of 1690.88 points. During this, the Nifty of the National Stock Exchange (NSE) was up by 489.15 points at 16252.20 points.
Small and medium companies saw less weekly buying as compared to the giants. During this period, BSE Midcap rose 117.50 points to 23204.72 points and Smallcap rose 19.3 points to 26805.92 points.
Analysts say that the stock market could have seen more rally last week, but the market remained in decline due to the Supreme Court's decision against the deal between the country's largest company Reliance Industries and Future Retail on the weekend. On Friday, Reliance had the biggest fall of more than two per cent.
According to analysts, however, the market has welcomed the government's decision to amend the Income Tax Act and make changes in the rules to implement the amendments from the retrospective date. This will give relief to companies in cases like issue of tax disputes with Cairn Energy and Vodafone as now tax will not be levied with retrospective date.
According to analysts, the market may see a rally in the next week as the auto, realty and consumer durables companies are expected to see a rise in business with the Reserve Bank keeping the policy rates unchanged. However, analysts have advised investors, especially small investors, to be cautious of this rally as foreign investors can book profits at any point of time, which can see a correction in the market.