Weekly Review: Markets gain on FDI vote
Markets ended the week higher on the back of the government's decision to allow foreign direct investment (FDI) in multi-brand retail after winning vote in both the houses of Parliament. Foreign Institutional Investors remained buyers through the week. The BSE Sensex added 84 points or half a per cent to 19,424. Nifty advanced 28 points to 5,907.
Markets edged higher in the beginning of the week on oil & gas shares. On Thursday, the Nifty ended at a 20-month high. Friday saw markets slipping marginally as traders took to booking profits even as the Rajya Sabha has voted in favour of the government for foreign direct investment in multi-brand retail.
Broader markets outperformed the benchmark. The BSE midcap index added 2.4% to 7,070 while small-caps followed close behind with 2.3% gains at 7,283
Meanwhile, India's services Purchasing Managers' Index, fell to 13-month low of 52.1 in November from October's 53.8, data showed today.
Global markets rose after comments from China's new leader boosted global growth expectations.
BSE realty index surged 5% to 2102. OIl & gas also showed a good rally and went up 3% to 8,510. Metal shares gained on reports of higher demand from China, the world's largest consumer of copper and aluminum.
Banks and financials which are proxy to the economy witnessed some selling pressure towards the end of the week. British lender Barclays said yesterday the Reserve Bank is likely to leave the policy rates unchanged at the December 18 review and that a lending rate cut may happen only in the January policy announcement. The index managed to end up 1.6% at 14,183. However, State Bank of India remained the top gainer this week with 6.5% gains at Rs 2,311.
However, BSE Indian IT index slumped 4% to 5,644. Most shares were in the red on fears that Cognizant Technology Solutions Corp may issue lower revenue growth guidance for 2013 based on compensation targets for top executives, dealers said.
Index heavyweight Reliance Industries (RIL) surged after the company on 5 December 2012 said that the board of Ex-Im Bank has voted to extend the single largest financing transaction of $2.1 billion to Reliance Industries. The stock rallied 5% to Rs 834.
Maruti Suzuki added over 2.4%. The stock touched a one-year high level after the company said it will increase the prices of its vehicles across all models by up to Rs 20,000 from January.
Hindalco, BHEL, Sterlite and ICICI Bank were other key gainers this week. On the other hand, Bharti Airtel slipped 4.3% to Rs 322. The initial public offer of Bharti Airtel's subsidiary Bharti Infratel opens for bidding on 11 December 2012. The price band for the IPO has been fixed at between Rs 210 to Rs 240 per share.
TCS and Wipro shed 3.4% each on outlook worries. Sun Pharma slipped 1.4% to Rs 700 after traders took to booking profits.
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