Markets rise for 2nd week

The Indian markets advanced for the second consecutive week, with the Sensex up by 1.89% and the Nifty up by 2.44%.

Headlines for the week

Moody's upgrades India's rating to investment grade

Car sales rise 8.5% in December

RBI says no to CRR cut for now

IIP turns positive in November

Food inflation at -2.9 vs -3.36%

Infosys cuts FY12 dollar revenue guidance

HDFC Q3 net profit up by 10%

Morgan Stanley downgrades India's energy sector


Indian markets

The Indian markets closed the week in the green zone aided by positive global cues on easing euro-zone debt worries. On the domestic front, a steep decline in food inflation and a stronger-than-expected Index of Industrial Production ( IIP) data for November 2011 also lifted investor sentiment. There were hopes that the Reserve Bank of India ( RBI) will start cutting interest rates in the coming months to prop up slowing economy.

The major disappointment this week was that the earnings season, which started with Infosys numbers failed to cheer investors due to the company’s weak guidance.

The Sensex swung 579 points between a weekly high of 16257 and a low of 15678 and closed the week higher by 1.89% or 306 points at 16155. The Nifty swung 203 points between a weekly high of 4899 and a low of 4695 and closed the week higher by 2.44% or 119 points at 4866. It was highest weekly close in five weeks for the Indian markets.

Global indices

All the global markets ended the week in the green zone. Top performers - Shanghai Composite jumped by 3.75%, Hang Seng gained by 3.29% and CAC 40 rose by 1.99%.

Sectoral and stock screening

Among the 13 sectoral indices, only two closed on a negative note. Top gainers - BSE Realty jumped by 13.10%, BSE Metal gained by 9.84% and BSE Power rose by 8.62%. Losers - BSE IT dropped by 6.88% and BSE TECk fell by 4.46%.

Coming to 'A' group stocks, top three gainers of the week - Lanco Infratech jumped by 40.87%, JSW Ispat Steel gained by 29.94% and GMR Infrastructure rose by 29.65%. Top three losers of the week - TTK Prestige tumbled by 10.23%, Indraprastha Gas plunged by 9.69% and Infosys slipped by 8.66%.

FII/MF activity

The foreign institutional investors (FIIs) were the net buyers of the Indian stocks this week to the tune of Rs1,466 crore. The domestic investors sold Indian shares worth a net of Rs418 crore during the week till January 12, 2012.

Outlook

The focus will remain on the companies’ earnings in the upcoming week. Inflation for the month of December 2011 will be out on Monday (January 16, 2012). The development across the globe may also set the trend for the markets.