Markets end higher led by FMCG

Highest weekly gain, up 4.7%

Benchmark share indices ended marginally higher on Friday, shrugging off weak global cues,  after index heavyweight Reliance Industries and FMCG major ITC reversed early losses to end higher.The 30-share Sensex provisionally ended up 70 points at 16,719 and the 50-share Nifty ended up 19 points at 5,068. This was the highest weekly gain for the markets in calendar year 2012.

Earlier in the day, Sensex touched a low of 16,485 amid a weakening rupee and negative global cues, as investors booked profits at higher levels after gains in the past two sessions. The Nofty saw a low of 4,995.

In the broader markets, the midcap and the smallcap indices were up 0.2% each underperforming the Sensex which gained 0.4%.

In the international markets, stocks in Asia declined on concerns that host of May economic data from China due for release over the week end could be discouraging. The Nikkei ended down over 2% because of drop in current account surplus. Among other Asian indices, Hang Seng, Shanghai and Straits Times were down 0.5-0.9% each.

European shares were trading lower on Friday on renewed worries over banking crisis in Spain and Germany's trade deficit widened with imports surpassing exports after seasonal adjustment. Further, the recent rate cut by China raised concerns that economic growth in the world's second largest economy could be slowing down. The CAC-40, DAX and FTSE were all down over 1% each.

The Indian rupee depreciated by 48 paise and was trading at Rs 55.42 to the US dollar following renewed demand for the US greenback.

Back home, among the sectoral indices, Capital Goods, Realty and FMCG gained 1% each. Power, Bankex, Oil & Gas and Metal indices added 0.4-0.7%. However, IT and Consumer Durables closed in the red, down 0.7% and 0.1% respectively.

Shares of infrastructure companies hogged the limelight consecutively for the second day after the Prime Minister Manmohan Singh emphasised on boosting investment in this sector. He chose to boost infrastructure spending in the country to deal with concerns over domestic economic growth. ABB, L&T, BHEL and Crompton Greaves up 1-3% were the top gainers in this space.

Index heavyweight, Reliance Industries rose 1% at Rs 729 bouncing back almost 3% from day’s low on the National Stock Exchange after Mukesh Ambani, chairman of RIL at the company’s annual general meeting on Thursday said that the company hopes to produce an additional 30 million cubic meters per day of gas at its KG-D6 field off India’s east coast.

FMCG majors, ITC and HUL added 1.3% each on renewed buying interest in defensive shares. The other major gainers among the Sensex stocks were Sterlite, Gail India, DLF, Tata Power, Bharti Airtel up 1-3.5%.

Auto shares witnessed a mixed trend after they had gained on Thursday on hopes the government will decide against imposing excise duty on diesel vehicle sales. Tata Motors was up 1% whereas Maruti Suzuki and Bajaj Auto closed down 1% each.

Other Sensex losers include Infosys and ONGC down 1% each. The market breadth was marginally positive. 1371 stocks advanced while 1357 stocks declined.