Fifth week flourish for markets; Sensex up 2%

Continuous buying support from the overseas investors was the key driver this week, with the Sensex rising 2.15% and the Nifty up 2.33%

Headlines for the week

December exports up 6.7% to $25 billion
India's manufacturing PMI at 8-month high in Jan
India's services sector grows at fastest pace in 6 months
Supreme Court cancels 122 telecom licences issued after Jan 2008
Govt discontinues weekly WPI release
PM expects 7 to 7.5% GDP growth in FY12
BHEL Q3 net profit up 2%
ICICI Bank Q3 net profit up 20%


Indian Indices
The Indian markets surged for the fifth consecutive week bolstered by positive economic data across the globe and increased foreign fund inflows. Results from heavyweights ICICI Bank led the rally while BHEL was a disappointment. Positive economic data back home — strong manufacturing sector growth in January and services sector grew at its fastest pace in six months in January — encouraged investor confidence in the markets. Stronger Indian rupee further aided sentiments.
During the week, the Supreme Court cancelled all 122 licences given by former Telecom Minister A Raja in 2008 and the verdict impacts huge telecom players like Unitech Wireless, Tata, Aircel and Idea.

The Sensex swung 802 points between a weekly high of 17631 and a low of 16828 and closed the week higher by 371 points or 2.15% at 17605. The Nifty swung 259 points between a weekly high of 5335 and a low of 5076 and closed the week higher by 121 points or 2.33% at 5326.
Sectoral and stock screening
Among the 13 sectoral indices, 11 closed the week higher. Top Gainers - BSE Realty surged by 4.77%, BSE Auto gained by 3.54% and BSE IT jumped by 3.33%. Losers - BSE CD dipped by 2.80% and BSE CG slipped by 0.97%.
Looking into 'A' group stocks, top three gainers of the week - Tata Global Beverage shot up by 22.46%, Sintex Industries up by 17.77% and Jet Airways rallied by 15.39%. Top three losers of the week - TTK Prestige shed by 6.36%, Glenmark Pharmaceuticals fell by 5.58% and Indian Oil Corporation dropped by 5.43%.

Global indices

All the global indices ended the week on a positive note except Nikkei down by 0.11%. Top five performers — Dax up by 3.91%, CAC 40 up by 3.29%, Nasdaq up by 3.16%, FTSE 100 up by 2.92% and Sensex up by 2.15%.
FII/MF activity
The foreign institutional investors (FIIs) were the net buyers of the Indian stocks of Rs4793 crore and the domestic investors sold Indian shares worth a net of Rs170 crore during the week till February 02, 2012.

Outlook

Focus will remain on the next batch of Q3 December 2011 results, which may dictate the near-term trend for the markets. On the macro front, data on industrial production for January 2012 is due on Friday (February 10, 2012). Developments across the globe, mainly in Greece may impact sentiments.