Market were on flame for the 7th straight week and moved a 7-month high with both the spiders Sensex and Effective breaching the 18,100 and 5,510 levels respectively on the back of powerful international hints and overseas inflows. This move was also led by purchasing by resources and store traders. On the sectoral front side, Real estate, Power and Investment products obtained floor.

Foreign Institutional Investors (FIIs) bought shares worth Rs 4,517.09 crs including provisional data of February 17, as against Rs4,040.70 crs last week.

Also during the week with the Q3 results season having ended, there was significant price action seen in pivotal counters from large sectors like Banking, Capital Goods and Autos. Tata Motors was in limelight after it announced record Q3 consolidated profits of Rs 3406 crs which were way ahead of market expectations. This saw the stock spurt by almost 6.% during the week. State Bank of India was also up 5% at Rs 2,469 and ICICI Bank gained 2% to Rs 980.40 on Friday on fresh buying by institutional investors.

On the other hand capital goods majors like Bharat Heavy Electricals was trading up 9.7% at Rs 311.20 and Larsen & Toubro surged 2.5% to Rs 1,482 levels. There was renewed interest in power equipment players after the Supreme Court overturned the Delhi High Court verdict that allowed Italian boiler manufacturer Ansaldo Caldaie Boilers to bid for providing equipment to NTPC. The court upheld NTPC's decision to disqualify the Italian firm from participating in this Rs 16,000 crore power equipment tender. This has increased chances of BHEL to bag a sizeable share of this Rs 16000 crs order.

On the policy side the central government under directions from the PMO announced that Coal India would have to work out firm Fuel Supply Agreements (FSAs) with independent power producers who were under tremendous pressure to raise power output.

This decision will undoubtedly put pressure on Coal India as any under delivery from its side would attract penalties and it would have to make up this shortfall from imports. However from a longer term perspective this is a welcome move as the government looks serious to address the core concerns facing the power sector. The Coal India stock was down by 5% over the week while other IPPs like Adani Power, Reliance Power, Lanco Infratech and Jindal Power were all up by 5 to 9% over this week. Finally the Nifty closed at 5563 levels from 5380 last week showing a rise of 3%