Positive cues from developed markets and foreign inflows fuelled a 5.2 per cent rally in the BSE Sensex over the past week. Shrugging off fears over rising interest rates and higher inflation, which was at 10.1 per cent, the broader BSE 500 index was up 4.4 per cent. BSE Mid- and small-cap indices gained 3.25 and 2.6 per cent respectively, capping off a great week for domestic markets.

Apparently, market participants seemed to be in the ‘bottom-fishing' mode with even the BSE Realty index having a strong week, gaining 9 per cent. The index has had a dreadful 2011 and has shed 22 per cent . A fat gainer among the realty majors was DLF which was up over 13 per cent. Other strong gainers included Unitech and HDIL which were up 8.7 per cent and 6 per cent respectively.

The BSE Bankex was another healthy gainer and was up six per cent. Expectations of lower market borrowing by the government aided several stocks in the space, including YES Bank and ICICI Bank , which were up 8.9 and 8.6 per cent respectively. Axis Bank also had a warm week gaining 7.4 per cent. IDFC gained 8.55 per cent. Bucking the index trend was Central Bank which shed 5 per cent. The company has announced a rights issue at a discount to its market price.

The BSE Metals index posted a gain of 3.7 per cent with global prices of steel and other metals stabilising, following a minor collapse sparked by the Japanese quake. The largest gainer was iron ore producer Sesa Goa which was up 7.45 per cent over hopes that the takeover of Bellary Steel and Alloys would serve as a catalyst for the company's steel foray. Hindustan Zinc and SAIL were among the others which posted smart gains of 9.5 and 7.2 per cent as the former effected a price hike and the latter over expectations of easing raw-material costs.

Aluminium producer Nalco shed about six per cent as the company effected a price cut early in line with international prices. It was a happening week for other members of the steel pack as Tata Steel gained 2.9 per cent on closure of the sale of its Teeside plant.

Bucking the trend of several peers such as Dr.Reddys, Lupin, Piramal Health and Glenmark which gained between between 3 and 3.7 per cent, Indian generic pharma major Ranbaxy Laboratories shed six per cent over concerns that it may not be allowed to release a low cost anti-cholesterol drug in the US market.

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