The BSE benchmark Sensex ruled firm for the third consecutive week, surging by another 584 points during the past week in view of strong corporate results and sustained buying by foreign funds.
Shares of realty, refinery, banking, capital goods, auto, metal and power companies shot up as operators and investors opted for heavy buying at existing levels.
The BSE Sensex rose by 584.39 points, or 3.62%, to 16,739.01, its highest close since December 7, 2011. The index has risen by 1,284.09 points, or 8.31%, in the last three weeks.
The S&P CNX Nifty also gained 182.60 points, or 3.75%, to 5,048.60, its highest close since December 7, 2011.
The BSE Mid-Cap index rose by 1.75% and the BSE Small-Cap index gained 1.71%. Both these indices underperformed the Sensex.
Foreign institutional investors (FIIs) bought shares worth Rs 4,441.37 crore in the eight trading sessions from January 10 to 19, 2012, as per provisional data from the stock exchanges.
Trading began on a positive note as headline inflation hit a two-year low, which reinforced expectations that the central bank will start cutting interest rates in the coming months to revive slowing economic growth. Headline inflation eased to a two-year low of 7.47% in December, 2011, from 9.11% in November, 2011.