Sensex rises 305 points during week on IIP data, food inflation figures

Indian equities markets rose during the week with a benchmark index gaining 305 points. Latest data showed industrial output soared in November while food inflation remained in the negative.

The positive news on the economic front gave strength to hopes that the Reserve Bank of India could lower interest rates in the coming monetary policy review on January 24.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) rose 1.93 per cent or 305.82 points points in the weekly trade and closed on Friday at 16,154.62 points.

At the National Stock Exchange, the 50-scrip S&P CNX Nifty moved up 2.35 per cent or 111.9 points to close the week at 4,866 points.

Both the benchmarks have gained for the second consecutive week.

During the week under review, broader market indices too gained with the BSE 500 index rising 3.44 per cent. The BSE midcap index went up by 5.37 per cent while the BSE smallcap index rose 7.12 per cent.

"While the Sensex gains appear modest, the midcap and small cap indices have done much better during the week. Capital goods, infrastructure, and power sectors were among the major outperformers for the week," said Sanjeev Zarbade, vice-president of client group research Kotak Securities.

Asian markets closed in the green as successful Italian and Spanish bond auctions helped alleviate concerns about the European debt crisis.

For the week, the Japanese Nikkei closed 1.31 per cent higher at 8,500.02 points, while the Chinese Shanghai composite index rose 3.75 per cent at 2,244.58 points.

Hong Kong's Hang Seng moved up 3.29 per cent and ended at 19,204.42 points.

European markets closed mixed.

Britain's FTSE 100 fell 0.23 per cent to close the week at 5,636.64 points.

The German DAX gained 1.41 per cent to end at 6,143.08 points, while the French CAC 40 shot up 1.88 per cent to close at 3,196.49 points.

In the US, markets rose for the second consecutive week with benchmark indexes touching five-month highs on Jan. 12.

For the week, the US Dow Jones Industrial Average closed 0.5 per cent up at 12,422.06 points, while the S&P 500 index closed 0.88 per cent higher at 1,289.09 points.

The Nasdaq moved up 1.36 per cent to end at 2,710.67 points.