After three days of sluggish moves, the Sensex and Nifty were fired up by a bank-led rally, and ended the week at record levels once again. The benchmark Nifty, stopped short of 8,500 mark, ending at 8,477 level and Sensex rose 267 points at 28,334. Both the indices gained 1 percent during the week.

Two major mergers during the week and positive global cues helped market to churn out solid gains. SBI, Kotak Mahindra Bank, PNB, Bharti Airtel Cipla and Reliance Industries were among the big gainers, climbing 3-10 percent. Second line shares did well during the week, but investors showed a marked preference for the large cap names.

Among sectors the week cleary belonged to public sector banks (Bank Nifty was up 2.7 percent while PSU Bank index jumped 4 percent) followed by capital goods, infra, auto and FMCG stocks which logged 1-2 percent gains during the week. Metals, realty and consumer durables remained weak. Despite the strong close to the week, a section of the market advised caution against buying heavily at current levels. Siddharth Bhamre of Angel Broking told CNBC-TV18 that weak rollover of FII positions in the equity derivatives market pointed to likely weakness ahead.

Investors lapped up huge shares of Kotak Mahindra Bank on Friday after the private sector lender announced the acquisition of mid-sized player ING Vysya Bank in an all-share transaction. The stock rallied as much as 9 percent in early trade to touch a record high of Rs 1,260.90. Brokerages were largely positive on the Kotak-ING deal with many saying that while it may immediately pressure some of Kotak’s metrics such as return on equity, it would help it in the long term by boosting its presence in the South where ING is focused, as well as by incorporating its SME lending book.

Coustery : http://www.moneycontrol.com/news/local-markets/weekly-wrap-ma-nudge-global-cues-boost-sensex-1-psbs-zoom_1234910.html