<p>After dropping over 160 points, the Sensex staged a remarkable recovery today to close 70 points higher at 16,718.87 -- its fifth straight day of gains -- and clocked the best weekly gains this year.<br /><br /></p>.<p>Market players said investors continued to bet on rate cut by RBI, helping markets shrug off weak global cues.<br /><br />After opening lower, the BSE benchmark Sensex touched the day's low of 16,485.02 points as US Federal Reserve chief yesterday dashed hopes of a fresh stimulus package while Fitch downgraded long- term credit rating of Spain, adding to Eurozone worries.<br /><br />Trends from Asian markets and European markets were also weak with indices down by up to 2 per cent.<br /><br />After moving in tandem with global trends, Sensex started recovering in the last two hours of trade after RBI Deputy Governor K C Chakrabarty said: "If inflation comes down, definitely monetary policy rate will come down".<br /><br />Brokers attributed the recovery to a rise in stocks of capital goods, realty and fast moving consumer goods.<br /><br />The 30-share index finally closed 69.82 points higher at 16,718.87, a fresh one-month high. The index also logged best weekly gains of 2012 by rising 753 points or 4.72 per cent.<br /><br />In the 30-share index, 21 stocks closed higher led by gains in Sterlite, Gail and L&T. Heavyweights like ITC and Reliance that rose over 1 per cent supported the rise.<br /><br />The 50-share NSE Nifty also rose by 18.70 points to close at 5,068.35, after slipping below the key 5,000-level.<br /><br />"In the short term, the RBI rate decision will be keenly watched. The April IIP as well as the May Inflation data to be released next week may have a bearing on the policy," said Dipen Shah, Head Fundamental Research, Kotak Securities.<br /></p>
<p>After dropping over 160 points, the Sensex staged a remarkable recovery today to close 70 points higher at 16,718.87 -- its fifth straight day of gains -- and clocked the best weekly gains this year.<br /><br /></p>.<p>Market players said investors continued to bet on rate cut by RBI, helping markets shrug off weak global cues.<br /><br />After opening lower, the BSE benchmark Sensex touched the day's low of 16,485.02 points as US Federal Reserve chief yesterday dashed hopes of a fresh stimulus package while Fitch downgraded long- term credit rating of Spain, adding to Eurozone worries.<br /><br />Trends from Asian markets and European markets were also weak with indices down by up to 2 per cent.<br /><br />After moving in tandem with global trends, Sensex started recovering in the last two hours of trade after RBI Deputy Governor K C Chakrabarty said: "If inflation comes down, definitely monetary policy rate will come down".<br /><br />Brokers attributed the recovery to a rise in stocks of capital goods, realty and fast moving consumer goods.<br /><br />The 30-share index finally closed 69.82 points higher at 16,718.87, a fresh one-month high. The index also logged best weekly gains of 2012 by rising 753 points or 4.72 per cent.<br /><br />In the 30-share index, 21 stocks closed higher led by gains in Sterlite, Gail and L&T. Heavyweights like ITC and Reliance that rose over 1 per cent supported the rise.<br /><br />The 50-share NSE Nifty also rose by 18.70 points to close at 5,068.35, after slipping below the key 5,000-level.<br /><br />"In the short term, the RBI rate decision will be keenly watched. The April IIP as well as the May Inflation data to be released next week may have a bearing on the policy," said Dipen Shah, Head Fundamental Research, Kotak Securities.<br /></p>