For the week, India's benchmark indices were among the best performers in Asia. The Nifty jumped 156 points or 3% this week while the Sensex added 495 points in the four trading sessions of the week.
Analysts attributed a revival in global and domestic sentiments for the over 10 per cent up move in the first three weeks of 2012.
"The up move has been slightly confusing... Globally investors have become less concerned about the global situation panning out...domestically, concerns about interest rates have been addressed...even on policy front, there have been some incremental changes...on the positive side... Tiny little changes like the government asking SEBs to increase tariffs have helped...it didn't take much for the markets to be re-rated by 10-12%," Manishi Raychaudhri, Strategist and Head of Research at BNP Paribas Securities said.
Technical analysts were also bullish. "I don't expect much downside from here...5,250 is a crucial resistance above which 5,600 and 5,700 is possible. A correction to 5,000 is also possible but investors should buy on declines. The short term trend is up," Somil Mehta Senior Technical Research Analyst (Equity) Sharekhan said.
However, there were words of caution too.
"The markets are at crossroads...a pullback is coming but we have to wait whether it will break or support. International problems are cropping up - the Baltic Dry index has plunged and Portugal will be the new Greece... I don't think the European problem could be solved... Though local problems are being solved, international worries will hurt the markets," Jai Bala of Cash the Chaos said.
Energy (2.7%), metal (1.9%) and IT (1.7%) were the big sectoral gainers on the Bombay Stock Exchange today. Among individual movers, Reliance Industries (3.7%) was the biggest contributor, adding 60 index points to the Sensex.
Many stocks gained on the back of strong Q3 numbers. Sesa Goa (7%) was the top gainer on the Nifty today on the back of higher than expected volumes growth in Q3, L&T (3.8%) extended gains on the back of strong order inflow in Q3.
Ranbaxy (down 6.5%) was the top loser on the Nifty index after analysts said the consent decree filed by the US Department of Justice on behalf of the FDA had far worse implications for company than earlier perceived. BHEL (down 3%) ended lower ahead of Q3 numbers. Analysts expected the company to revise the order inflow guidance lower.
Realty (down 2.2%) stocks underperformed the broader markets and witnessed profit booking today. DLF (down 3.5%) was among the big losers on Nifty index.
The market breadth was positive with nearly 65 per cent stocks rising on the broader BSE 500 index.
Weekly gainers and movers:
Sectoral gainers: Cap goods (5.6%), Teck (5.2%), Auto (4.3%), IT (4%), Consumer durables, bankex and metal: 3-3.5%
Nifty gainers: SAIL (15%), Sesa Goa (13%), Reliance Infra (10%), Maruti, Tata Motors, Bharti, IDFC: 9-10%
Nifty losers: Hero MotoCorp (6.6%), Ranbaxy (5.2%)