Heavyweights buoy markets, financials shine

India's benchmark share indices ended higher, amid a volatile trading session on Friday, led by ICICI Bank and Reliance Industries.

RIL recouped its intra-day losses ahead of its third quarter results and share buyback proposal to be announced after market hours today.

The 30-share Sensex ended up 95 points at 16,739 and the 50-share Nifty ended up 29 points at 5,047.

ICICI Bank and RIL accounted for a 83-point gains on the Sensex.

The Indian markets had opened higher tracking strong global cues after the euro rose on Thursday as the solid demand at European bond auctions eased worries about the euro zone debt crisis, while encouraging earnings reports from Morgan Stanley and Bank of America bolstered Wall Street.

During the day, the BSE benchmark index had touched the day's high at 16,789 and the day's low at 16,612.

In Asia, Japan's Nikkei average closed at its highest level in more than two months on Friday, with investor sentiment riding high after upbeat earnings from Morgan Stanley and Bank of America further confirmed the strength of the US economic recovery despite headwinds from Europe's sovereign debt crisis.

The Nikkei added 1.5% to 8,766 and gained 3.1% for the week.

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The Hang Seng index ended at 20,110 and the Shanghai Composite index ended at 2,319, having advanced nearly 1% each.

European markets are lower today with shares in Germany off the most. The DAX is down 0.67% while France's CAC 40 is off 0.49% and London's FTSE 100 is lower by 0.29%.

Meanwhile, back home, the Supreme Court today ruled in favour of Vodafone in the $2 billion tax case saying capital gains tax is not applicable to the telecom major.

The apex court also said the Rs 2,500 crore (Rs 25 billion) which Vodafone has already paid should be returned to Vodafone with interest.

The decision, experts said, will be a big boost for cross-border mergers and acquisitions here.

The Income Tax department's contention, if upheld, would have rendered standard transaction structures too risky forcing foreign companies to weigh potentially new litigation and insurance costs.

BSE Bankex, Consumer Durables and Oil & Gas indices were among the top performers, having gained 1-4% each.

BSE banking index jumped 3.5% at 10,912 levels after both the food and December headline inflation eased significantly, improving growth outlook.

The notable gainers from the pack were Axis Bank, ICICI Bank, Federal Bank, Bank of India and Bank of Baroda, 5-6% each.

Axis Bank, country's third largest private sector lender, posted 24% increase in net profit at Rs 1,102 crore for the third quarter ended December, 2011.

Net profit in the corresponding quarter a year ago stood at Rs 891 crore. Net interest income stood at Rs 2,140 crore.

BSE Consumer Durables index gained 2% at 5,794 and the prominent gainers from the pack are Titan Industries, TTK Prestige and Rajesh Exports, having gained 1-5% each.

Interest rate sensitive Realty pack maintains the steady momentum on expectations that the RBI will start cutting interest rates in the coming months to support the slowing economy.

DLF has zoomed by nearly 2%. Parsvnath Developers and Prestige Estates, up 2-5% each, are the significant gainers from among the realty stocks.

On the Sensex, Bajaj Auto, ICICI Bank, Jindal Steel, BHEL and SBI, up 3-6% each, were the top gainers.

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 companies have been reeling under rising input costs and sluggish consumer demand as high inflation and interest rates gnawed away at consumer spending. BSE FMCG index shed 2% at 4,035 levels.

Other prominent losers from among the Sensex 30 stocks were Mahindra & Mahindra, Maruti Suzuki, Hindalco Indsutries and Coal India, down 2-4% each.

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 overall market breadth was negative as 1,480 stocks advanced against 1,365 advancing ones, on the BSE.