Sensex extends gains for 3rd straight week

The BSE benchmark Sensex extended its gains for the third consecutive week by surging another 133 points during the truncated week on sustained capital inflows coupled with easing of inflation figure though a clutch of CAG reports dented sentiments to some extent. Shares of oil & gas, auto, consumer durable, capital goods, tech and IT sectors firmed up on good buying enquires while metal, power and FMCG shares fell on selling pressure. Brokers said the sentiment improved following announcement by market regulator SEBI of wide-ranging steps to reform the mutual fund industry and the IPO space. However, sentiments turned sour towards the weekend after a Comptroller and Auditor General of India (CAG) report named Jindal Steel, Essar Power, Hindalco, Tata Power and Adani Power amongst firms that gained Rs1.86 lakh crore from coal blocks allocated on nomination basis. wo other reports of the government auditor dealt with Delhi airport development and diversion of coal to a private power project in Madhya Pradesh.     The 30-share BSE sensitive index resumed slightly down at 17,551.69 and dropped to a low of 17,522.10 but recovered sharply on Friday to a fresh five-month high of 17,801.39 on renewed hopes of rate cut by the Reserve Bank, following lower-than-expected fall in July inflation numbers. However, the index dipped to settle the week at 17,691.08 after the CAG said private firms are likely to have gained about Rs 1.86 lakh crore from coal blocks allocated on nomination basis, which amounted to notional loss to national exchequer. The index was still up 133.34 points, or 0.76 per cent. The Sensex has gained 851.89 points, or 5.06 per cent, in the last three weeks. The NSE 50-share Nifty also rose by 45.90 points, or 0.86 per cent, to finish at 5,366.30. The Nifty has gained 266.45 points, or 5.22 per cent, over the last three weeks. From gulftoday