Mumbai: The BSE benchmark Sensex bounced back by 130 points to settle the week at 18,755.45 in view of fresh buying in mainly in consumer durable, auto, pharma, IT and metal sectors.

Optimism over the reshuffle of Cabinet coupled with renewed capital inflows from foreign funds boosted the market sentiment.
Worried over high budget deficit derailing growth, Finance Minister P Chidambaram unveiled a five-year road map for fiscal consolidation to promote investments, contain inflation and take India to high growth trajectory.

Auto stocks were in demand on higher sales in the month of October and hopes of more sales in the forthcoming festival season.

Sensex resumed slightly up at 18,656 and dropped to 18,393.42 as the RBI kept the key borrowing and lending rates unchanged as well as hiked provisioning norms and lowered growth projection, spooking investors who resorted to all-round selling, particularly in bank and realty stocks.

However, Sensex recovered afterwards to 18,793.75 on renewed buying on the back of recovery in global market to finish the week at 18,755.45, showing a net gain of 130.11 points or 0.70 percent.

The NSE 50-share Nifty also moved up by 33.40 points or 0.59 percent to close at 5,697.70. The RBI maintained status quo on repo rate, cut GDP growth forecast for 2012-13 to 5.8 percent from 6.5 percent and increased inflation estimate to 7.5 percent from 7 percent.

(Agencies)

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