The first week of new year was featured by an important achievement by the stock market, which ended past 14,000 milestone for the first time on January 2, after four failed attempts during December. However, a cautious approach by investors ahead of the release of third quarter corporate earnings and a slowdown in FII inflows pared the gains during second half of the week.
In the week till January 6, the Bombay Stock Exchange (BSE) benchmark Sensex ended at 13,860.52, a rise of 73.61 points or 0.53 per cent over last weekend's close of 13,786.91.
During the week, the BSE bellwether witnessed choppy trade between 14,060.35, which is a life-time intra-trade high, and 13,763.39 on alternate bouts of buying and selling.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) advanced by 17.00 points or 0.43 per cent to close at 3,983.40 from previous weekend's close of 3,966.40.
Investors focused their attention on the mid-cap and the small-cap segments as the valuations of frontline counter seemed stretched at higher levels.
Refinery, Auto and IT stocks were prominent gainers on heavy buying support from operators.
The rally in refinery sector was mainly attributed to easing global crude oil prices, which dropped near $55 a barrel at the weekend while auto counters hogged the limelight on encouraging December sales data.
FII activity, largely slowed down due to long year-end holidays, is still to pick up in the new year.
Metal shares, however, suffered a sharp setback in line with a slide in metal prices on the LME.
IT counters also attracted good buying support on expectation of better-than-expected Q3 results to be announced by tech-major, Infosys Tech, in the next week.
Though the market outlook for the new year 2007 remained positive, analysts opined that mid-cap and small-cap stocks would outperform the frontline counters, which were already in the overbought positions, in the current year.
They also believed that the Indian economy is still going strong and will continue to attract good foreign capital portfolio investments, giving stability to local bourses.
Reflecting rally in second-line shares, the BSE-Smallcap index spurted by 299.23 points or 4.34 per cent to 7,191.55 and the BSE-Midcap index by 131.49 points or 2.27 per cent to 5,936.67.
The broad-based BSE-100 Index improved further by 40.77 points to end the week at 7,023.33 from 6,982.56 last weekend.
The BSE-200 Index and the Dollex-200 were quoted modestly higher at 1,663.44 and 625.58 at the weekend compared to last weekend's close of 1,655.74 and 622.68, respectively.
The BSE-500 Index also moved up by 40.92 points to end the week at 5,311.68 from last weekend's close of 5,270.76 and the Dollex-30 closed the week higher at 2,570.47 from 2,556.82 last weekend.
On the NSE, the S&P CNX Defty firmed up by 14.35 points to end the week at 3,118.50 from last weekend's close of 3,104.15 and the S&P CNX Nifty Junior rose by 53.05 points to 7,159.40 from 7,106.35 last weekend.
During the shortened week due to a holiday on January 1, the trading volume on the BSE and the NSE was at Rs 17,770 crore and Rs 31,421 crore.
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