For the second successive week, Indian stock markets gained helped by lower than expected inflation numbers, encouraging worldwide signals and heavy buying action by funds.

The Sensex breached the mark of 15k during the week ended July 25, on the back of positive response.

But, the stock market on Friday (July 25) lost over 500 points due to disappointing worldwide cues, together with news of a bomb blast in outskirts of Bangalore. At least two persons died and 20 people injured in eight blasts, which hit Bangalore’s central business area and other crowded regions.

Moreover, the market also responded to the political news saying that UPA coalition government subsisted a parliamentary vote of confidence regardless of left-wing conflict to a N-deal with US.

Stocks, which pushed the benchmark index higher during the week included Reliance Comm, REL, SBI, Wipro and Ranbaxy.

In contrast, Satyam Computer, Maruti Suzuki, Ambuja Cement and Bharti Telecom were the major losers in the 30-share index.

The Sensex closed the week at 14,274.94, with a gain of 639.54 points, whereas the 50-share index, Nifty gained 219.6 points at 4,311.85.

For the week ended July 12, India’s inflation, based on the wholesale price index (WPI) decreased to 11.89% from 11.91% recorded in the previous week.

Stock market analyst, Vishwas Agarwal said, “BSE 13,786 is basic & strong support, in case index drops due to negative sentiments.”

Mr. Vishwas also said that RBI’s credit policy, which will be announced on Tuesday (29 July), will set direction for the coming days.

“Everyone is keenly waiting for credit policy. If the policy is soft, then a good jump is expected,” he said.

According to Mr. Agarwal, overall outlook is strong better than July.

He said that the coming month (August) will offer more opportunities for smart players. This time frontline & other than frontline stocks will also contribute that was out from the stock market since last 3-4 months.