Mumbai: The SENSEX made a strong turnaround and pierced through the crucial 3,000-resistance to end the week with a whopping 3.61 per cent gains on the back of a sharp stocks rally on the Mumbai Stock Exchange (BSE) on hectic buying support during the week under review.

The SENSEX ended the week at a six-week high at 3,056.58. The BSE-PSU index flared up by 126.51 points or 7.31 per cent to an all-time high at 1,858.01 at close on May 16.

The rally was more pronounced in the banking and public sector undertakings (PSU) sectors as domestic financial institutions and speculators turned extremely bullish on them with brokers justifying the sudden interest in these sectors neglected for quite a long time.

While the banking sector is expected have a positive impact from structural changes and securitisation Bill in the near future, PSU counters emerged hot favourites of investors in anticipation of speedy reforms.

Though foreign institutional investors (FIIs) have slowed down their activity placing small buy/sell orders in order to change portfolios, Indian financial institutions led by Life Insurance Corporation provided heavy support to the depressed market enabling it to rise past the crucial resistance.

BoB, BoI, Corp Bank, Federal Bank, ICICI Bank, HDFC Bank, J&K Bank, IDBI Bank, Oriental Bank, SBI, BHEL, GUJ Mineral, GSFC, HOEC, IBP, Bharat Forge, Dredging Corp, BEML, IOC, Kochi Refinery, Chennai Petro, ONGC and HPCL scored sharp gains.

Of the 182 gainers, 22 advanced by over 15 per cent with only 16 in the specified list showing marginal losses.

PTI