Markets close week with 4% gain

Markets posted gains for the third consecutive week and rose 4% on positive global cues and strong foreign fund inflows

Headlines for the week

December inflation at 7.47 % vs 9.1% in November

Supreme Court rules in favour of Vodafone in tax case

RIL Q3 net profit falls by 14%

HDFC Bank Q3 net profit up 31%

Wipro Q3 consolidated net profit up by 10%

TCS Q3 consolidated net profit up by 18%

Hero MotoCorp Q3 net profit jumps by 43%

HCL Tech Q2 net profit up by 43%

ITC Q3 net profit jumps 22%



Indian indices

Bulls continued its strong run for the third straight week helped by positive global cues. The Indian markets touched their highest weekly close in six weeks on the back of gradual easing of funding problems in the eurozone, improvement in the economic data of the United States, appreciation of rupee and better quarterly earnings.

India’s inflation for the month of December 2011 falling to two-year low at 7.47% also soothed investor mood as this may prompt the Reserve Bank to cut policy rates in the upcoming review. Strong foreign fund inflows were the key drivers this week.

The Sensex swung 751 points between a weekly high of 16788 and a low of 16038 and closed the week higher by 584 points or 3.62% at 16739. The Nifty swung 237 points between a weekly high of 5064 and a low of 4827 and closed the week higher by 183 points or 3.75% at 5049.

Sectoral and stock screening

All the sectoral indices closed the week higher except BSE FMCG down by 0.90%. note. Top gainers - BSE Realty advanced by 7.97%, BSE Oil & Gas jumped by 6.43% and BSE Bankex surged by 5.94%.

Coming to 'A' group stocks, top three gainers of the week - Adani Enterprises advanced by 25.70%, Pantaloon Retail (India) surged by 19.48% and Adani Ports & Special Economic Zone gained by 18.15%. Top three losers of the week - Essar Oil tumbled by 16.01%, MMTC plunged by 11.13% and Indraprastha Gas declined by 9.27%.

Global indices

The sentiment across the globe got a boost as Europe funding worries recede alongwith upbeat earnings and better economic data. All the global indices closed the week on a strong note. Top performers — Hang Seng up by 4.72%, Dax 100 up by 4.25%, CAC 40 up by 3.91%, Sensex up by 3.62% and Shanghai Composite up by 3.32%.

FII/MF activity

The foreign institutional investors (FIIs) were the net buyers of the Indian stocks this week to the tune of Rs3,535 crore. The domestic investors were the net sellers of the Indian stocks this week till January 19, 2012 to the tune of Rs173 crore.

Outlook

High volatility is likely to be seen in the truncated week, with Indian markets closed on Thursday (January 26, 2012). The near-month January 2012 F&O contracts will expire on Wednesday (January 25, 2012). The Reserve Bank of India (RBI) Third Quarter Review of Monetary Policy 2011-12 will be released on Tuesday (January 24, 2012). Earnings of major companies will remain in focus.