Markets log longest rally of weekly gains since Feb 2012

Benchmark share indices ended flat on Friday but logged their sixth straight week of gains, the longest since the seven-week rally from January 2,2012 to February 19, 2012, led by IT majors and Tata Group shares that rallied on Moody's upgrade.

However, the US Federal Reserve’s decision to keep US interest rates near zero for a 'considerable time' and Chinese President Xi Jinping’s pledge to invest $20 billion in India in the next five years are likely to attract the market participants in the near future.

The 30-share Sensex lost 22 points to close at 27,090 and the 50-share Nifty gained 7 points to end at 8,121.

In the broader market, the BSE Mid-cap index ended flat with a positive bias while Small-cap index ended 0.6% higher.

Market breadth ended negative with 1,600 losers and 1,449 gainers on the BSE.

Meanwhile, overseas investors bought index futures worth $106.22 million on Thursday, as per NSE data. Foreign banks bought debt worth of 18.93 billion rupees ($311.7 million), as per CCIL data.

Rupee:

The rupee is trading at 60.7500/7550 vs Thursday's close of 60.83/84, driven by hopes of continued foreign fund buying in shares and bonds.

Across The Globe:

The British pound rose sharply after the Scottish independence vote indicated Scotland would remain in the United Kingdom, while Wall Street's overnight gains and Alibaba Group's red-hot initial public offering underpinned Asian shares.

Japanese stocks soared to a seven-year high on Friday after the yen dropped sharply after Scottish voters rejected a bid for independence and averted a break-up of the United Kingdom.

Afternoon comments by Prime Minister Shinzo Abe to carry out pension reform as soon as possible bolstered already upbeat sentiment.

The Nikkei share average ended 1.6% higher at 16,321.08, the highest closing level since 2007 and before the collapse of Lehman Brothers. It was the biggest daily percentage gain in a month, and was up 2.3% for the week. During the session, the index easily topped a December 30 high of 16,320.22.

Sectors & Stocks:

On the sectoral front, BSE IT index was the top gaining index up 1.5% followed by Teck and Healthcare indices trading between 0.4-1%.

However, FMCG, Oil & Gas, Realty, Metal, Power, Auto and Capital Goods indices lost sheen and lost between 0.5-2%.

Meanwhile, Bankex and Healthcare index ended flat with a negative bias.

Shares of Tata Group companies barring Tata Motors ended higher up to 3% on the BSE after global rating agency Moody's upgraded the debt ratings for many group firms including Tata Motors, Tata Steel and Tata Consultancy Services.

In the technology pack, IT major Infosys ended its session with marginal losses shrugging off the news that the company widened collaboration with Microsoft

and Hitachi Data Systems, in line with chief executive Vishal Sikka's vision to strengthen software offerings and expand global alliances.

However, India's third largest IT firm Wipro ended nearly 1% higher continuing its rally of past few trading sessions after securing a contract from Saudi-based Saudi Electricity Company for implementing and rolling out plant maintenance and project system functionality of SAP ERP application.

In the healthcare space, drug maker Sun Pharma extended its rally and inched up marginally in today’s trade up nearly 0.5% after the company entered into a licensing agreement with Merck & Co Inc for investigational therapeutic antibody candidate, Tildrakizumab to be used for treatment of plaque psoriasis, a skin ailment.

Also, Cipla ended 1% higher after it signed an agreement with American company Salix Pharmaceuticals, under which Cipla has granted Salix exclusive rights over certain patent applications in the 'Rifaximin Complexes' patents owned by Cipla.

The grant is on a worldwide basis, excluding the countries of Asia (other than Japan) and Africa.

Following the tandem, Dr Reddy’s Lab ended nearly 1% higher.

Metal shares which surged recently after China's economic stimulus raised hopes of a boost in demand in the world's biggest consumer of metals continued to trade higher in today’s trade.

Coal India, Hindalco and Tata Steel were up between 0.5-1%. However, Sesa Sterlite ended the session marginally in red.

Cigarette maker and Index heavyweight ITC gained nearly 1% on fresh buying.

In the financial segment, Axis Bank, ICICI Bank and HDFC twins climbed up between 0.5-1.5% on renewed buying.

Bharti Airtel ended its session marginally in the positive territory.

The company is obliged to spend Rs 436 crore for merging Airtel Broadband Services with itself towards differential spectrum cost and migration fee.

In the Capital Goods segment, engineering conglomerate L&T lost over 2% in today’s trade. BHEL was down 1% despite winning an order worth over Rs 3,500 crore for setting up a thermal power project in Gujarat.

In the Oil and Gas space, Oil majors RIL and ONGC slumped 1% and 2% each.

The Auto pack ended lower today with M&M, Tata Motors and Hero Motocorp down between 1-1.5% on account of profit taking.

GAIL, HUL and SBI were some of the notable names in red among others.

Among other shares, Suzlon Energy lost 10% at Rs 20.40 on BSE, with no buyers on the counter, after fresh shares allotted on conversion of foreign currency convertible bonds (FCCBs) of the company starts trading today.

Archies ended nearly 7% higher to Rs 33, after hitting a 52-week high of Rs 35.30 on the BSE, following acquisition of the company's shares by a private firm through a bulk deal on the National Stock Exchange.

Aegis Logistics surged 9% to Rs 401 on NSE, ahead of board meeting today, 19 September 2014, to consider and approve sale of a minority stake in one of company’s subsidiary.