Mumbai: Notwithstanding profit booking, the BSE benchmark Sensex ended higher for the second week in a row and hit a 14-month high of 18,762 on buying towards the end on the back of global rally triggered by Spain announcing a crisis budget for 2013.
The Spanish government's budget proposals on late Thursday and hopes of more support from People's Bank of China to boost the world's second-largest economy mainly supported the market on Friday, when Indian bourses posted smart gains.
Continued buying by foreign funds also helped the 30-share Sensex to land the week in positive terrain.
Firm global trend and a rising rupee, which this week hit a five-month high against the dollar, helped the market start new settlement in the derivatives segment on a promising note.
Cut in India's GDP growth forecast by international rating agency S&P to 5.5 percent this fiscal from 6.5 percent projected earlier, due to volatile global economic situation weighed on the market sentiment.
Shares of consumer durable, FMCG, realty, power and healthcare sectors firmed up sharply on good buying enquiries while refinery, metal and IT sectors declined on profit booking from operators.
Small and mid-cap shares also moved up on good demand from retail investors as their indices rose by 3.06 percent and 2.72 percent respectively, outperforming the Sensex.
The BSE benchmark resumed slightly higher at 18,756.31 and shot up further to 18,869.94, but declined afterwards to 18,552.68 before ending at 14-month high at 18,762.74, showing a modest gain of 9.91 points, or 0.05 percent.
The index had settled at 18,871.29 on July 25, 2011.
The NSE wide-based index Nifty also moved up by 12.15 points, or 0.21 percent, to end above the 5,700-mark for the first time since July 7, 2011. The 50-share index ended at near 15-month high of 5,703.30 on Friday.
Foreign institutional investors (FIIs) bought shares worth Rs 8,874.65 crore during the week, including the provisional figure of September 28.
The market remained largely dull till Thursday due to alternate bouts of buying and selling in view of expiry of derivatives contract on September 27 and also concerns over economic growth.
Metal stocks fell as global growth worries cast a shadow over the future demand for commodities.
Major gainers from the Sensex pack were M&M (6.97 percent), BHEL (6.26 percent), Cipla (5.32 percent), Tata Power (4.13 percent), ITC (3.91 percent), Sun Pharma (3.58 percent), HUL (2.83 percent), Maruti (2.82 percent), Hindalco (2.37 percent) and Bajaj Auto (1.78 percent).
Among the losers, Bharti Airtel fell by 5.10 percent followed by Sterlite (4.65 percent), ONGC (4.41 percent), Coal India (3.34 percent), Tata Motors (2.86 percent), Infosys (2.33 percent) and Hero MotoCorp (2.17 percent).
Among the major indices, the BSE-CD rose by 4.77 percent), the BSE-FMCG by 4 percent, the BSE-Realty by 3.91 percent, the BSE-Power by 2.95 percent, the BSE-HC 2.32 percent and the BSE-CG gained 2.09 percent.
However, the BSE-Oil&Gas dropped by 2.17 percent, the BSE-Metal 1.41 percent and the BSE-IT slipped 1.01 percent.
The total turnover at BSE and NSE rose to Rs 14,889.02 crore and Rs 83,444.87 crore, respectively, from the last weekend's level of Rs 10,802.64 crore and Rs 63,606.56 crore.