Markets gained for the fifth straight week on the back of buying by FIIs and a fast growth in the services sector. The Sensex gained 371 points or 2% to 17,605. Nifty jumped 121 points or 2.3% to end at 5,326.
Markets started the week on a low note with investors booking profit. The Sensex touched the lowest in a week at 16,828. On Tuesday, the Sensex ended with the best ever monthly performance since September 2010 and best January gains in 18 years. Wednesday, Sensex rose led by index heavyweight Reliance Industries, auto and metal shares. With the Supreme Court cancelling all 2G licences on Thursday, Bharti Airtel buoyed the markets. The Sensex touched its highest this week on Friday - 17,630 - on the back of buying in Reliance and private banking majors.
The Supreme Court on Thursday cancelled licences given to the telecom firms involved in 2G spectrum allocation scam. A total of 122 licences had been issued since January 2008.
Foreign institutional investors (FIIs) bought shares worth Rs 4,793 crore through the week till Thursday.
Meanwhile, on the macro-economic front India's exports grew by merely 6.7% to $25 billion in December 2011 compared to the same month last year due to demand slowdown in the western markets of the US and Europe. The manufacturing sector also grew at its fastest pace in eight months in January as factory output surged the most on record on increased domestic and foreign demand, a business survey showed on Wednesday.
The rupee climbed to a three-month high today, propelled by dollar inflows and gains in the local share market.
IT stocks rose after European Union leaders on yesterday, endorsed a treaty aimed at strengthening accountability and reining in spending by member nations as part of efforts to control the region's sovereign-debt crisis. Europe is the second biggest outsourcing market for the Indian IT firms after the US. Infosys and TCS spurted by ... Moreover, Fitch has affirmed a stable outlook for the India information technology (IT) services sector in 2012 on account of its strong liquidity position, even though it warned that revenue growth of the segment may moderate this year.
From the Realty pack, DLF rose 8.8% to Rs 230 on expectations that the central bank will start cutting interest rates in the coming months to prop up slowing economy.
Bharti Airtel added 3.6% to Rs 389 on expectation that the telecom major could emerge as one of the major beneficiaries following today’s Supreme Court verdict.
From the Healthcare segment, Sun Pharma surged 5% to Rs 556 after rating agency Fitch said its outlook on India's pharmaceutical sector for 2012 remains stable, as earnings prospects are expected to remain positive because of the growing global demand for generics and opportunities provided by patent expiries in developed markets.
ICICI Bank rallied nearly 3% to Rs 915 after it reported 20% year-on-year (y-o-y) growth in net profit at Rs 1,728 crore for the quarter ended December 2011, compared with Rs 1,437 crore in a year ago quarter.
SBI gained 3% to Rs 2,103 as the GoI agreed to inject around Rs 7,900 cr into the bank by way of preferential allotment of equity shares.
Bajaj Auto gained after the company unveiled a new motorcycle, Pulsar 200NS in Mumbai on Monday, 30 January 2012. The stock was up 4.7% at Rs 1,611. Hero MotoCorp and Tata Motors from the auto space also rose 3-7% each.
Meanwhile, in an otherwise buoyant market, Coal India, BHEL, L&T, ITC and HDFC were the only stocks to end in the red, losing 0.5-4%. Coal India was in news through the week for the roll back in its decision to increase prices under the new pricing mechanism the company came out at the start of the year. Hence, the stock slumped 4% to end the week at Rs 326.