Sensex tumbles 846 points for the week, Nifty below 10,200

Mumbai: The benchmark Sensex tumbled 846.30 points for the week to revisit at 32K-level at 32,832.94, while the broader Nifty ended below the key 10,200-level to close at 10,121.80.

The market saw largely volatile sessions throughout the week, with first three-days trading range-bound possessed by uncertainty over the September quarter GDP data.

Finally, the bounce-back in the GDP growth and the brief short-covering gains during start of the week dismantled by caution as bears silently took control, pressured by surge in country’s fiscal deficit figure, while renewed tensions in Korean peninsula and F&O expiry added the volatility.

Country’s reversing trend in economic growth with GDP data showing an expansion by 6.3 per cent in July-September after five-quarter slide, usurped by worries over widening fiscal deficit as it hit 96.1 per cent or 5.25 lakh crore of the budget estimate for 2017-18 pressuring banking sector.

The Sensex started the week lower at 33,640.51 and hovered between 33,770.15 and 33,797.78 before settling the week at 32,832.94, showing a loss of 846.30, or 2.51 per cent. (The Sensex gained 364.68 points or 1.09 per cent in previous two weeks session).

The Nifty also started the week lower at 10,361.05 and traded in the range of 10,409.55 and 10,108.55 to end at 10,121.80, showing a fall of 267.90 points, or 2.58 per cent.

Selling was led by Metals, PSUs, IT, Teck, Banks, Oil&Gas, Power, Auto, Healthcare, FMCG, ConsumerDurables and Capital Goods. While Realty and IPOs witnessed some buying.

Broader Indices midcap and smallcap company shares also sold off this week.

Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 3,471.90 crore during the week, as per Sebi’s record including the provisional figure of December 01.

The S&P BSE Mid-Cap index fell 177.05 points, or 1.05 per cent, to settle at 16,757.27. The S&P BSE Small-Cap index fell 7.07 points, or 0.04 per cent, to settle at 18,017.48.

Among sectoral and industry indices, Metal declined by 4.00 per cent followed by IT 3.14 per cent, teck 2.89 per cent, bankex 2.69 per cent, oil&gas 2.65 per cent, power 1.60 per cent, auto 1.48 per cent, healthcare 1.43 per cent, FMCG 0.71 per cent, consumer durables 0.70 per cent and capital goods 0.46 per cent, while IPO rose by 0.60 per cent and realty 0.48 per cent.

Among the 31-share Sensex pack, 28 stocks fell and remaining 3 stocks rose during the week.

Auto major Tata Motors fell by 6.07 per cent, it was followed by SBI 5.93 per cent, Infosys 5.09 per cent, Tata Motors DVR 4.92 per cent, Adani Ports 4.28 per cent, Reliance 4.18 per cent, Sun Pharma 4.12 per cent, Power Grid 3.91 per cent, Tata Steel 3.82 per cent and ICICI Bank 3.72 per cent.

Car major Maruti Suzuki India was the top gainer in the Sensex pack last week. The stock rose 1.41 per cent to Rs 8,607.55. The company said its total sales rose 14.1 per cent to 1.54 lakh units in November 2017 over November 2016.

It was followed by NTPC 0.42 per cent and Coal India 0.42 per cent.

The total turnover during the week on BSE fell to Rs 21,385.34 crs as against last weekend’s level of Rs 21,642.20 crore, While NSE rose to 1,66,518.45 compared to Rs 1,49,893.85 crore previously.

Gold makes third straight weekly loss

In a holiday shortened week, gold continued its downhill journey, marking its third straight weekly loss inspite for the ongoing wedding season due to slackened demand from jewellers stockists and traders, at the domestic bullion market during the week, even as the metal weakened overseas.

Traders said slowdown in buying by local jewellers and retailers at the domestic market and a weak trend overseas mainly weighed on gold prices.

Silver followed suit and cracked below the Rs 39,000-mark due to reduced offtake by industrial units and coin makers.

The white-metal shed a whopping 3.86 per cent in its two week downslide, or Rs 1,520 per kg.

Trading activity remained restricted as markets were shut Friday on account of ‘Id-E-Milad’.

In worldwide trade, gold finished with losses for the second week in a row, while it gained Friday paring its loss for the week, as the US dollar weakened and equities dropped in the wake of news that former national security adviser Michael Flynn pleaded guilty to lying to the FBI.

The news raised concerns over further upheaval in President Donald Trump’s administration.

February gold climbed USD 5.60, or 0.4 per cent, to settle at USD 1,282.30 an ounce. Prices had been seesawing and were trading near session lows when news on Flynn broke. For the week, the contract was down about 0.7 per cent but based on the most-active contracts, it was down roughly 0.4 per cent from the December contract’s finish at USD 1,287.30 a week ago.

Elsewhere on Comex, March silver fell 0.5 per cent to USD 16.388 an ounce. Prices for the contract were set for a weekly loss of 4 per cent.

In the New York Comex trade, gold for February delivery dropped to settle at USD 1,282.30 an ounce compared to last weekend’s close of December USD 1,287.30, while March silver contract fell to end at USD 16.388 an ounce from December USD 16.992.

On the domestic front, standard gold (99.5 purity) resumed higher at Rs 29,495 per 10 grams from last Friday’s closing level of Rs 29,440, later it drifted down to settle at Rs 29,250, revealing a loss of Rs 190, or 0.65 per cent.

Pure gold (99.9 purity) also commenced higher at Rs 29,645 per 10 grams compared to preceding weekend level of Rs 29,590, later fell to close at 29,400, revealing a fall of Rs 190 per 10 grams, or 0.64 per cent.

Silver ready (.999 fineness) opened lower at Rs 39,325 per kilo gram from last Friday’s closing level of Rs 39,335 and dropped further to finish at Rs 38,070 showing a loss of Rs 1,265 per kilo, or 3.22 per cent.

Rupee closes at fresh two-month high

The rupee continued its highly bullish run for the third-straight week and ended at a fresh two-month high of 64.46 against the beleagured dollar even as S&P kept India’s credit rating unchanged.

Mounting a strong rally, the home currency settled with a smart 24 paise gain.

Expectations of robust capital inflows against the backdrop of Moody’s recent sovereign rating upgrade for India largely kept forex market sentiment buoyant despite impending Fed rate hike concerns and surging crude prices.

Heavy unwinding of dollars by some foreign banks and corporates also supported the upbeat trend.

Positive vibes created by the global rating agencies on India predominantly injected a new enthusiasm.

Though, the global rating agency Standard & Poor’s kept its sovereign rating for India unchanged at ‘BBB-minus’ with ‘stable’ outlook saying vulnerabilities stemming from low per capita income and high government debt balance strong GDP growth.

The rating stance taken by S&P Global Ratings comes days after Moody’s Investors Service raised India’s sovereign rating for the first time in over 13 years on growth prospects boosted by continued economic and institutional reforms.

Moreover, improving macro fundamentals and growing expectations of more reforms that will boost long-term economic growth and attract healthy foreign inflows are largely helping rupee to maintain a strong upbeat trend, a forex dealer said.

A weak dollar overseas trend also weighed on trade despite progress toward tax cut legislation as Special Counsel Mueller brings down Michael Flynn, striking at the heart of “team Trump”.

In global commodity trade, crude prices spiked higher, heading toward fresh 2-1/2 year highs after two key crude producing nations agreed to limit their output through the end of 2018.

International benchmark Brent crude surged USD 1.11, or 1.8 per cent, to USD 63.74, not far off last month’s high of USD 64.65 that marked the best intraday level since June 2015.

The forex market was shut Friday in view of Id-E-Milad holiday.

At the Interbank Foreign Exchange (forex) market, the rupee resumed soft at 64.71 from last Friday’s close of 64.70 and drifted further to a low of 64.83 due to strong month-end dollar demand.

However, overcoming the initial wobble, the local currency staged a spirited recovery to hit a high of 64.27 before ending at 64.46, revealing a smart rise of 24 paise, or 0.37 per cent.

The Indian currency has strengthened by a whopping 70 paise, or 1.07 per cent to the dollar in three-week surge.

In the meantime, country’s foreign exchange reserves reclaimed the USD 400-billion mark again, rising by USD 1.208 billion to touch USD 400.741 billion in the week to November 24, according to the weekly data from the Reserve Bank.

Foreign investors infused over USD 2.6 billion in the country’s capital markets this month so far, propelled by government’s announcement of recapitalising PSU banks and India faring well in the World Bank’s ‘ease of doing business index’.

The RBI fixed the reference rate for the USD at Rs 64.4332 and euro at Rs 76.4887, respectively.

On the global front, the US dollar dropped sharply to reports that Michael Flynn, Donald Trump’s former national security adviser who was charged Friday with lying to the FBI, was prepared to testify that the president directed him to make contact with Russian officials.

The dollar index, which tracks the greenback against six major currencies, was a tad higher at 92.81 against 92.79 previously.

Elsewhere, the common currency euro staged a good run against the US dollar on the back of stronger-than-expected Eurozone data and the improvement in risk appetite.

British Pound, however, slipped from a two-month high against the dollar, getting only a temporary boost from better-than-expected UK manufacturing data, as investors fretted about Britain reaching a deal with the European Union over the Irish border.

In cross-currency trade, the rupee remained sluggish against the British pound and settled at 86.65 per pound from 86.13.

The local currency, however recovered against the Euro to finish at 76.33 as compared to 76.73 and also rebounded against the Japanese Yen to close at 57.39 per 100 yens from 58.03 last weekend.

In the forward market, premium for dollar showed a mixed trend owing to lack of market moving factors.

The benchmark six-month forward dollar premium payable for April moved down to 114-116 paise from 117-119 paise, while the far-forward contract maturing in October 2018 held steady at 256-258 paise last Friday. (PTI)

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