Weekly Markets : Nifty ends above 5,000

Markets ended the week to January 20, at their 6-week closing highs with the Nifty crossing the 5,000 mark, led by bank shares on the back of better-than-expected third quarter numbers and persistent buying by foreign funds.

The Sensex today ended up 95 points at 16,739 and the 50-share Nifty ended up 29 points at 5,048 on banking shares and Reliance. This took the Sensex up 584 points, or 3.6% through the week. Nifty ended up 183 points or 3.7% for the week.

Markets edged up on Monday as headline inflation for December fell to two-year lows. Tuesday saw markets extending gains as it mirrored gains in the global markets with China's better-than-expected fourth quarter GDP growth boosting market sentiment.

However, indices snapped the winning streak on Wednesday amid a volatile trading session with software technology shares leading the decline on the back of a stronger rupee.

Thursday saw the markets touching six-week closing highs on firm global cues following the initiative by the International Monetary Fund to help countries impacted by the Euro debt crisis.

Meanwhile, the headline inflation fell to a two-year low of 7.47% in December 2011 on cheaper food items, a factor which may prompt the Reserve Bank to cut policy rates in the upcoming review. Taking a cue from this, Finance Minister Pranab Mukherjee said the declining rate of price rise indicates improvement in macro-economic parameters and projected March-end numbers at 6-7%.

Moreover, India's December exports rose an estimated annual 6.7% to $25 billion, while imports for the month were at $37.8 billion, leaving a trade deficit of $12.8 billion, Trade Secretary Rahul Khullar said on Monday.

Metal shares zoomed on better-than-expected Chinese economic growth data. BSE metal index added 4% to 11,197.

Interest rate sensitive realty segment extended their gains for straight sixth trading session on expectations that the RBI will start cutting interest rates in the coming months to support the slowing economy. The index was the biggest gainer among sectoral indices and rose 8% to 1,707.

IT stocks were under the selling pressure after the Indian rupee rose to a two-month high after foreign investors increased their investments in Indian debt and equities. The index underperformed and ended on a flat note at 5,499.

Wipro, India's third-largest software services exporter, reported a 10.4% rise in consolidated net profit at Rs 1,456 crore in the quarter ended December 31,2011. The net profit in the corresponding quarter of the previous year stood at Rs 1,319 crore. The figures were in line with street expectations, helped by a weaker rupee and the restructuring of its operations. The IT major's consolidated revenue in Q3FY12 was reported at Rs 9,997 crore, up 28% from the same period last year and the global IT revenue stands at Rs 7,607 crore, also up 28% from last year. The stock edged up 3% during the week at Rs 414.

Index heavyweight, Reliance added 8.3% at 793. During the week, the Securities & Exchange Board of India (Sebi) examined whether RIL made proper disclosure about the acquisition of significant stakes in ETV channels. The company also announced buyback plans. RIL posted a 13.5% drop in its net profit at Rs 4,440 crore for the quarter ended December 2011 after market hours today. The company announced a buyback of up to 12 crore shares at a price of Rs 870 per share.

The company had a net profit of Rs 5,136 crore in the same period last fiscal, RIL said in a filing to the Bombay Stock Exchange (BSE). The turnover rose by 42.39% to Rs 85,135 crore for the quarter under review from Rs 59,789 crore in the same period last fiscal.

From the auto pack, Maruti Suzuki added 12.5% to Rs 1,099 on news that the company has raised prices of all its vehicles by 0.3% to 3.4% due to unfavorable foreign exchange movements and hike in commodity prices.

M&M dropped 5% at Rs 656 after the Income Tax Appellate Tribunal ordered Mahindra Intertrade, a M&M subsidiary, to pay Rs 3.6 crore penalty for concealing income and furnishing inaccurate details about earnings.

Bajaj Auto posted a 19.19% rise in net profit at Rs 795 crore in the quarter ended December 31, 2011.  In the same period last year, it's net stood at Rs 667 crore. On the other hand, Hero MotoCorp, the company that recently separated from Honda group after a 26-year old joint venture, posted a 43% rise in net profit for the third quarter ended December, 2011 Q3 net at Rs 613 crore. The stocks rose 9% each to Rs 1,558 and Rs 1,951, respectively.

From the financial space, SBI gained 8.7% at Rs 1,931 on proposed capital infusion by the government. HDFC Bank, country's third largest lender by assets, posted a 31% rise in net profit for the third quarter ended December, 2011 at Rs 1,429.66 crore as compared to Rs 1,087.83 crore for the same quarter last year. Shares of HDFC Bank advanced 4% at Rs 489.

Among other stocks, ONGC added 5.8% at Rs 275 on reports that the state-run oil exploration firm is in talks with US energy firm, ConocoPhillips, to explore possibilities of joining hands for exploration of oil and gas in Indian deep sea and shale gas in North America.

DLF advanced 8.8% at Rs 214 on reports that the India’s largest real estate firm is planning to sell a convention centre project in Delhi and its wind power business for about Rs 1,800 crore early next fiscal.

Tata Steel was up 5% at Rs 437 after the company announced that it had secured a major contract from Siemens Wind Power to supply 25,000 tonne of high-quality profiled steel plate for wind towers.

Bharti Airtel edged up 2% at Rs 342 after the Income Tax (I-T) Department slapped a Rs 1,067-crore demand notice on the telecom giant for non-payment of TDS dues in the last four financial years in connection with its overseas operations.

ITC Ltd, the largest cigarette maker in India, posted a larger-than-expected 22% rise in quarterly profit, aided by price increases, but its shares slipped 4% on account of profit booking and moderating volume growth. India's fast moving consumer good (FMCG) companies have been reeling under rising input costs and sluggish consumer demand as high inflation and interest rates gnaw away at consumer spending. The stock slipped 2.6% at Rs 201 for the week.