The BSE Sensex ended lower today in a volatile session, after both the houses of parliament were adjourned on the second day of the winter session, raising questions about the fate of proposed legislation.
Markets will now focus on the government's ability to push through reforms, while also paying close attention to the country's efforts to contain its fiscal deficit, including a four per cent stake sale in Hindustan Copper Ltd that was fully covered.
Global market developments will also be key, as the US Congress continues budget negotiations over the so-called 'fiscal cliff' and the IMF and European Central Bank meet again on Monday over aid to Greece.
"The focus over the next few weeks will remain on reforms and the fiscal cliff in the US," said Phani Sekhar, fund manager-PMS, Angel Broking. "Even the GDP data is discounted, the key is reform measures," he said.
The benchmark Sensex ended down 0.06 per cent, or 10.77 points, to end at 18,506.57, gaining 1.08 per cent for the week.
The broader Nifty ended 0.02 per cent lower, or 1.15 points, to end at 5,626.60. It added 0.94 per cent for the week. The weekly gain was the first since the week ending November 2, on value-buying for selective stocks.
Nonetheless, markets ended on a weaker note today. Drug makers retreated a day after India approved a new drug pricing policy designed to increase the number of drugs deemed essential that are subject to price caps.
GlaxoSmithKline Pharmaceuticals Ltd fell 0.7 per cent, while Cipla was down 1.4 per cent.