Mumbai: The BSE benchmark sensex and CNX Nifty snapped their last 2-week losing streak and recovered by 586 points and 200 points respectively on bargain hunting from domestic mutual funds despite selling from foreign funds.
With the deadline for depositing banned notes ended on Friday and ahead of the approaching Union budget, investors accelerated buying activity with hopes that the government might come up with a series of steps to boost the economy.
Sentiment turned for the better after Finance Minister Arun Jaitley said there has been a sharp jump in tax collections, belying fears of a sharp slowdown in the economy in view of demonetisation.
For the week, the Sensex and the NSE Nifty recorded a rise of 585.76 points or 2.25 per cent to 26,626.46, and 200.05, or 2.51 per cent to 8,185.80, respectively.
The sensex had dropped 706.48 points or 2.64 per cent in previous two weeks.
The Nifty had also tumbled by 276 points or 3.34 per cent in previous two weeks. Trading for the week started on a negative note on initial selling from operators.
However, market recovered on buying at the fag-end of the week hoping for radical remarks in the Prime Minister's speech on December 31, said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.
