Sensex, Nifty gain 1.9% this week on ECB's move

Indian shares rallied nearly 2% this week, majorly supported by Friday's more than 300 points upmove due to European Central Bank chairman Mario Draghi's unlimited bond buying programme.

The NSE Nifty rose 1.91% or 100.2 points to 5,358.70 and the BSE Sensex gained 1.89% or 331 points to close at 17,760.70.

The CNX IT shot up 4.7% while BSE Auto Index was up 2.2% and Realty Index moved up 1.8%.

Among largecaps, Maruti Suzuki, Infosys, HCL Technologies and Hindustan Unilever rallied 5-6%. Tata Motors, DLF and JP Associates were up 4.5-4.9%.

Power equipment maker BHEL went down 5%. Shares of IDFC crashed 4.8% while Tata Power tanked 3.2%. ITC was down 1.7%.

The broader markets too gained in tandem with benchmarks; the CNX Midcap Index climbed 2.4% and BSE Small Cap Index was up 1.77%.

In the second line shares, DEN Networks surged 21%. Hathway Cables, WWIL, Aurobindo Pharma, Deccan Chronicle, Wockhardt and Hexaware shot up 10-18%.

S Kumars Nationwide, Jain Irrigation, Jet Airways, JSW Ispat and GSPL fell 5-9%.

Indian shares closed at two-week high in a special trading session on Saturday, led by hopes of another economic stimulus by the Federal Reserve after a weaker-than-expected jobs report yesterday. The 50-share NSE Nifty closed above the 5350 level for the first time in last 10 sessions, which rose 16.60 points to 5,358.70.

The 30-share BSE Sensex gained 76.97 points at 17,760.70, aided by gains in banks, metals, oil & gas and FMCG stocks.

The market gained for the second consecutive session today after the European Central Bank's new unlimited bond buying programme. Experts believe the rally from here on will depend on the German's Constitutional Court ruling on ESM that scheduled on September 12.

Investors should also watch out for Federal Reserve's meeting on September 12-13 as expectations mounted for another stimulus package for revival of economic growth after yesterday's disappointing jobs report. The US equity markets closed flat yesterday.

Back home, the broader markets slightly outperformed benchmarks as about two shares advanced for every share declining on the National Stock Exchange. The BSE Midcap Index was up 0.5% and Smallcap up 0.6%.

Drug producer Cipla was the top gainer, rising 2.65% after the company won patent case against Roche. Dr Reddy's Labs gained 1.7%.

Index heavyweight Reliance Industries and country's second largest software services exporter Infosys gained 0.5% each.

Commercial vehicle major Tata Motors, which rallied 4% yesterday, jumped another 1%. Top lenders State Bank of India, ICICI Bank and HDFC Bank closed marginally higher.

Metals stocks extended the rally; Sterlite Industries jumped 2%. Tata Steel, Hindalco Industries and Jindal Steel gained 0.8-1.6%.

State-run power equipment manufacturer BHEL fell 1% as brokerages raised doubts over order book that linked to allocation of coal blocks.

Telecom equipment maker ITI surged 10% as the government said the Department of Telecommunications has prepared a plan worth Rs 4,156 crore for revival of the company.

National Fertiliser, HMT, Ceat and Autoline Industries rallied 3-6.5%. Healthcare companies like Strides Arcolab, Aurobindo Pharma, Amar Remedies and Shasun Pharma too were up 3-5%.

Deccan Chronicle Holdings surged 8% and Madhucon Projects went up 9%. Mercaotr Lines SPARC and Mercator moved up 1-1.6%.

Tulip Telecom went down 1% on concerns over payment of FCCBs.

The 50-share NSE Nifty has touched the 5350 level amid choppy trade, supported by oil & gas, healthcare, banks, FMCG and metals stocks. Drug producer Cipla surged more than 2% as the company won patent case against Roche, which filed suit against the company on drug Tarceva in 2008. Delhi HC said Cipla's product Erlocip could be marketed.

The BSE benchmark was up 47.42 points to 17,731.15 and the NSE benchmark advanced 9.5 points to 5,351.60.

Index heavyweight Reliance Industries and state-run oil & gas producer ONGC moved up 0.4-0.5%.

Commercial vehicle major Tata Motors rose 0.7%, extending yesterday's upmove of 4%.

Metals stocks added on more gains on hopes of Fed stimulus. Sterlite Industries rallied nearly 2%. Jindal Steel, Hindalco and Tata Steel gained 0.5-1%.

Country's largest lenders State Bank of India and ICICI Bank were trading with marginal gains.

State-run power equipment manufacturer BHEL dropped 1.4% on profit booking.

Telecom operator Bharti Airtel, GAIL and NTPC were down 0.4-0.6%.

The broader markets too were marginally higher as advancing shares outnumbered declining by 720 to 418 on the National Stock Exchange.

Telecom equipment maker ITI surged 10% as the government said the Department of Telecommunications has prepared a plan worth Rs 4,156 crore for revival of the company.

Indian equity benchmarks opened their Saturday's special trading session on a flat note following a lacklustre trade in US markets on Friday. The market seemed to be in a consolidation more after yesterday's 337-point rally on the Sensex.

The 30-share BSE Sensex gained 37 points at 17,720.38 and the 50-share NSE Nifty rose 7 points to 5,349.40.

The US equity markets were little unchanged yesterday as investors looked still hopeful for another economic stimulus from the Federal Reserve after weaker-than-expected jobs report.

Back home, largecaps like Sterlite Industries, Tata Steel, Hindalco Industries, Ambuja Cements, Wipro and Dr Reddy's Labs saw buying interest.

Cipla topped the buying list in early trade with gains of 1.5%. Wipro went up another 1%.

Reliance Industries moved up 0.5% as CLSA upgraded the stock with a target of Rs 850 a share.

BHEL, Bharti Airtel, BPCL and JSPL were under pressure.

In the second line shares, state-owned ITI rallied 6%; RCF, Hindustan Copper and National Fertiliser surged 3-5% on divestment buzz.