Surge in auto and cement sales, along with a growth in GDP numbers, buoyed Indian bourses above crucial levels. Markets brushed off euro-zone and inflation worries to end in the green for the second straight week.
On Monday, data announced that India's economy grew at 7.4% in the year. This was better than the earlier projected 7.2%, and mainly due to a robust manufacturing sector. Further positive news came as the IMD announced that monsoons had hit the southern coast on time. The monsoons will bring about relief to the 60% of rain-fed agricultural land in the country.
However, Sensex declined on Tuesday on weak global cues as markets in Asia tumbled. Chinese manufacturing growth was slower in the past month. Political indtsabilty in Japan also effected the global bourses. The Nifty touched the week's lowest of
4,970.
However, a positive US housing data buoyed the markets once again. The Sensex regained the the psychological 17K mark after 11 trading sessions and touched a high of 17,150 on Friday.
The Sensex finally ended with a gain of 255 points (1.5%) at 17,118. The Nifty ended up 69 points (1.3%) at 5,136.
BSE midcap and small-cap indices gained 1.8% each to 6,890 and 8,640, respectively.
Auto sector gained on good sales number. The BSE auto index jumped 4.4% to 7,894, it was followed by FMCG, PSU and healthcare. However the metal index slumped 2% during the week.
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Reliance Communications soared 14% to Rs 168. Bharti Airtel was up 6% at Rs 276.
Auto stocks stole the show with Maruti Suzuki jumping 8.8% to Rs 1,331. Mahindra & Mahindra was not far behind and surged 1.3% to Rs 585. Hero Honda and Tata Motors added 4% and 3%, respectively.
Hindustan Unilever gained 6.8% to Rs 252. ONGC and Reliance Infrastructure added 5% each to Rs 1,190 and Rs 1,110, respectively.
However, weakness was seen in metal stocks. Sterlite plunged 5% to Rs 649. Jindal Steel dropped 3.5% to Rs 631. Tata Steel and Hindalco slipped 2% each to Rs 485 and Rs 148, respectively.
Jaiprakash Associates declined 3% to Rs 123. Tata Power dropped 2.5% to Rs 1,239. Wipro and HDFC were down 1% each.