data showing that retail inflation rose to 10.56 per cent in December from 9.90 per cent in November.
Foreign Institutional Investors (FIIs), the main market driver, remained net buyers throughout the week, investing a net Rs 4,977.79 crore, including the provisional figure of January 18.
The market ended in the green on four out of five trading days. On Wednesday, it had dipped by 169 points as rate cut hopes were dented by RBI Governor D Subbarao's view that inflation is "still high".
The rally was also attributed to approval of 50 per cent reduction by the Government in reserve price of spectrum used by CDMA operators and good third quarter results announced by some major corporates.
Thirteen out of 30 Sensex scrips ended with gainswhile others finished with losses. Second-line counters, however, underperformed the sensex, indicating lack of any major retail investments. The BSE-Small cap index settled down by 1.13 pct while the BSE-Midcap was up by a mere 0.12 pct.
State-run oil and gas major, ONGC, was the top gainer in the Sensex pack with a rise of 15.58 per cent. Petro-chem giant Reliance Industries (RIL) gained 7.11 per cent. Other gainers from the sensex pack were NTPC (7.67 pct), Bharti Airtel (7.38 pct), GAIL India (5.51 pct), ITC (4.95 pct), TCS (3.43 pct) and Infosys (2.85 pct).
However, M&M dropped by 5.90 pct, followed by Wipro 5.33 pct, Hero MotoCorp 3.75 pct, Sun Pharma 3.52 pct, Hindalco 3.38 pct, Sterlite Ind 2.91 pct, Bajaj Auto 2.88 pct, Cipla 2.80 pct, Jindal Steel 2.15 pct, HUL 1.70 pct, Coal India 1.59 pct and Maruti Suzuki 1.29 pct.
Among other sectoral indices, the BSE-Realty spurted by 7.33 pct, BSE-PSU 4.67 pct, BSE-Teck 2.82 pct, BSE-IT 2.45 pct and BSE-Power 1.75 pct while BSE-Auto dropped by 2.88 pct, BSE-Metal 1.44 pct and BSE-HC by 0.89 pct.
The total turnover at BSE and NSE was at Rs 12,288.25 crsand Rs 66,915.11 crs respectively as against the last week's level of Rs 13,452.18 crs and Rs 64,590.39 crs.
Forex: The Indian rupee extended its gains for the second week in a row and