Mumbai: Stocks: Both the indices, Sensex and Nifty, snapped its 2-week losing streak on fresh buying mainly in banking sector buoyed by the passage of bankruptcy bill by the government in the Parliament despite rise in inflation figure.

IT, Tech, Capital Goods and FMCG sectors also firmed up on good buying enquiries.

Domestic shares logged their first weekly gain in the third week on the back of quarterly earnings, which were so far in line with expectations, as Sensex rose 261.07 points or 1.03 per cent and Nifty climbed 81.45 points or 1.05 per cent in five days. The Sensex had dropped 609.64 points or 2.36 per cent and the NSE Nifty 165.85 points or 2.10 per cent in previous two weeks. The BSE Sensex logged its biggest single-day gain in nearly four weeks, surging 460 points on Monday on a flurry of buying activity after global shares rallied on hopes that the US Fed Reserve will remain cautious on interest rate hikes. Equities took a beating of 300 points on the last day to fall to a one-week low as investors saw odds of an early rate cut receding after inflation hardened in April amid fears that Sebi’s move to tighten P-Note norms would hit foreign fund inflows. In a double whammy, government data showed that industrial production plunged to 0.1 per cent in March, while retail inflation jumped to 5.39 per cent in April. “Weak inflation numbers caused speculation that the Reserve Bank would hold off on cutting interest rates at its policy review next month, thus dampening investor sentiment,” said Shreyash Devalkar, Fund Manager Equities, BNP Paribas MF. Market also affected on fears that equity inflows would take a hit after India’s move to impose capital gains tax on investment through Mauritius. — PTI