It was a bad week for Dalal Street, but investors kept their cool and pushed forward. Key benchmark indices soared last week, shrugging off weak industrial production data, high inflation and soaring global crude oil prices.

The fall in the domestic currency against the dollar also failed to impact the market. On the other hand, the falling rupee lifted the shares of IT and export-oriented companies.

The BSE Sensex rose 698 points or 4.17 per cent to 17,434.94 points during the week ended May 16. The S&P CNX Nifty rose 175.10 points or 3.51 per cent to 5157.70 in the same week.

“The market ignored rising prices and weak industrial growth. This is quite unusual. The market still sees earning potential in the ongoing quarter. The Sensex would have fallen by around 800 points, but this did not happen,” said BSE dealer Pawan Dharnidharka.

The wholesale price index (WPI) rose 7.83 per cent in 12 months ended May 3, 2008, higher than the previous week’s annual rise of 7.61 per cent, government data showed.

Inflation data will be closely watched as it remains as a major worry for the domestic growth. High inflation may compel the government to take more fiscal measures to rein in prices in addition to a slew of measures taken recently. It has already indicated the possibility of taking more measures. India’s industrial production growth dropped sharply to 3 per cent in March 2008, slowing from the previous month’s unrevised 8.6 per cent. It was the slowest annual growth since a 2.4 per cent rise in February 2002. “This news should have created nervousness in any market. But not in India,” said an analyst.

... contd.