Mumbai: Market rose for the fourth successive week, as the benchmark Sensex scaled new milestone of 34K to register new closing highs 34,056.70 and gaining 116.53 points, while the broader Nifty ended at 10,530.70.
The truncated, last trading week of the calender year started positive and ended in a cheerful note, though the market did face sluggish momentum due to year-end holiday-mood and F&O derivative expiry day, still witnessing all time record highs on intra-day basis during the week.
Fears of government’s additional borrowing plan and fiscal slippage, rising crudeoil led the investors to sell on every rise, while the broader sentiments lifted by strong growth fundamentals, expectation of pickup in third quarter earnings and market friendly forthcoming Union budget.
Finally, the market bid farewell to upbeat 2017 on a cheerful note, marking considerable yearly gains of over 28 per cent, shrugging off macro discomfort and uncertainties on the global front.
The Sensex started the week higher at 33,980.76 and hovered between marking new milestone at 34,137.97 and low of 33,752.03 before settling the week new record highs at 34,056.83, showing a gain of 116.53, or 0.34 per cent. (The Sensex garnered 1,107.36 points or 3.37 per cent during previous three week sessions).
The Nifty also resumed the week up at 10,512.30 and moved between fresh highs at 10,552.40 and low of 10,460.45 to close the week at 10,530.70, showing a gain of 37.70 points, or 0.36 per cent.
The Market was closed Monday (December 25), due to Christmas.
Realty, HealthCare, Teck, IT, Power, Auto, Consumer Durable, FMCG, IPOs and CapitalGoods hogged the limelight.
Metals, PSUs, Oil&Gas and Bankex witnessed profit-booking.
The broader midcap and and smallcap company shares continued to preferred by investors, outperforming key indices.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought whopping shares worth Rs 3,148.31 crore during the week, as per Sebi’s record including the provisional figure of December 29.
Broader market rallied. The S&P BSE Mid-Cap index rose by 1.41 per cent at Rs 248.62 and the S&P BSE Small-Cap index gained 1.26 per cent at Rs 239.52. Both these indices out performed the Sensex.
Among sectoral and industry indices, realty climbed 4.35 per cent followed by healthcare 2.63 per cent, Teck 1.63 per cent, IT 1.28 per cent, Power 0.86 per cent, auto 0.67 per cent and consumer durables 0.64 per cent.
However, metal dropped by 9.46 per cent, PSU 1.52 per cent, Oil&gas 1.31 per cent and Banking 0.43 per cent.
Among the 31-share Sensex pack, 19 stocks rose and remaining 11 stocks fell during the week.
Major Index gainers include — SunPharma surged by 7.60 per cent followed by Wipro 4.09 per cent, Dr Reddy 3.49 per cent, Tata Steel 3.07 per cent, TCS 2.30 per cent, Tata Motors 2.20 per cent, AsianPaint 1.84 per cent, TataMtrDvr 1.83 per cent, Yes
Bank 1.61 per cent, Axis Bank 1.61 per cent, HindUnilever 1.22 per cent, AdaniPorts 1.01 per cent and ONGC 0.65 per cent.
However, SBIN dropped 3.24 per cent, NTPC 1.45 per cent, Powergrid 1.38 per cent, Coal India 1.13 per cent, Larsen 0.77 per cent and ICICI bank 0.76 per cent.
The total turnover during the week on BSE eased to Rs 21,021.39 core as against last weekend’s level of Rs 26,746.88 crore and NSE declined to 1,37,358.30 crore compared to Rs 1,61,033.21 crore previously.
Firm demand supports gold
Gold advanced for the third straight week up Rs 545 to close the week at Rs 29,240 per 10 grams reclaiming its 29k level on firm demand from stockists and retailer amid bullish trend overseas.
Good local buying interest following by ongoing marriage season also supported the gold sentiments.
Elsewhere, silver too maintained its third weekly surge regaining its 38K level, jumped by another Rs 1,245 per kg to finish the week at Rs 38,425 owing to speculative buying coupled with higher industrial offtake.
Overseas, gold futures jumped Friday, booking their seventh-straight positive session, and retaking a level above USD 1,300 for the first time in about three months.
February gold closed at USD1,309.30 an ounce, reaching its highest level since Sept. 25.
The yellow metal enjoyed a nearly 14 per cent rise in 2017, the gains come as the broader metals complex rises amid weakness in the US dollar, which most commodities are priced in. US Dollar Index which measures the buck against six rival currencies, was down at 92.17 Friday.
A weaker dollar tends to provide a boost to dollar-pegged commodities, making them more attractive to users of weaker monetary units.
Gold gains were “due primarily to the depreciation of the US dollar, which was suffering from President Trump’s unpredictability and falling Fed rate-hike expectations. As stock markets soared to ever new record levels, and the US tax reform began to take shape, interest in gold dwindled in the autumn,” a dealer said.
In other metals, March silver rose less than a penny, to USD 16.925 an ounce. Silver futures on a continuous basis are headed for a nearly 6 per cent gain this year.
In the New York Comex trade, gold for February delivery climbed to USD 1,309.30 an ounce compared to last Friday’s close of USD 1,278.80 and silver for March contract also rose to end at USD 16.925 an ounce from USD 16.440.
On the domestic front, standard gold (99.5 purity) resumed higher at Rs 28,910 per 10 grams from last Friday’s closing level of Rs 28,695, it rose further to Rs 29,260 before settling at Rs 29,240, revealing a smart rise of Rs 545, or 1.90 per cent.
Pure gold (99.9 purity) also commenced higher at Rs 29,060 per 10 grams compared to preceding weekend’s level of Rs 28,845, it advanced to Rs 29,410 before closing at Rs 29,390, showing a gain of Rs 545, or 1.89 per cent.
Silver ready (.999 fineness) opened positive at Rs 37,695 per kilogram from last Friday’s closing level of Rs 37,180, and surged further to Rs 38,370 before finishing at Rs 38,425, registering a steep rise of Rs 1,245 per kilo, or 3.35 per cent.
Rupee at 4-month high
Building a meaningful momentum into the year-end, the rupee capped off a fabulous 2017 at a fresh four-month high of 63.87 against US dollar, seemingly unfazed by the prospect of Trump’s tax reforms and higher US interest rates.
The home currency ended the last trading week of the year with a healthy 18 paise jump after a brief consolidation.
This is the highest closing for the home currency since September 8 this year.
Frantic dollar unwinding by banks and exporters along with bullish local equities, further impending bout of strength. Besides, the prevailing bearish sentiment for the American unit proved to be a catalyst for the Indian rupee.
On year-over-year basis, the rupee appreciated by a whopping 405 paise, or 5.96 per cent, as compared to 2016-end level of 67.92 – putting it course for best year since 2010.
The year 2017 gave a massive edge to the Indian rupee when compared to its counterparts in other Asian and emerging economies, after a long six-year hiatus.
Also helped by dynamic capital inflows, the year undoubtedly marked an incredible comeback and a new beginning for the home currency even as the country witnessed a dramatic and eventual transition to a cash-less economy.
The Indian rupee wide swings during the year, plunging to its near all-time low of 68.35 in early January and hitting a fresh 2-year peak of 63.55 in August this year.
Meanwhile, the dollar sank to three-month lows against its major trading counterpart worldwide.
The greenback was also the worst G10 currency of 2017, dipping nearly 10 per cent over the year on trade-weighted basis.
Foreign institutional investors turned net buyers to the tune of USD 398.26 mln in domestic equities this week.
Additionally, country’s foreign exchange reserves surged by USD 3.53 billion to touch a new lifetime high of USD 404.921 billion in the week to December 22, aided by an increase in foreign currency assets, a RBI data showed.
In global commodity trade, Brent crude rose 1.1 per cent Friday to USD 66.87 a barrel for gains of 17 per cent for the year.
At the Interbank Foreign Exchange (forex) market, the rupee resumed modestly higher at 64.03 from last Friday’s close of 64.05 but soon fell back to touch a fresh one-week low of 64.27 due to month-end demand for the American currency from importers and banks also some concerns over government’s additional borrowing plan.
However, overcoming the mid-week jolt, the domestic currency staged a spectacular rebound to hit a new four-month high of 63.87, revealing a smart gain of 18 paise, or 0.28 per cent.
The RBI fixed the reference rate for the USD at Rs 63.9273 and euro at Rs 76.3867, respectively.
The dollar index, which tracks the greenback against six major currencies ended lower at 91.99 – the worst year since 2003, down about 10 per cent against 92.88 last week.
The dollar index was at a 14-year peak at the start of 2017 on hopes for US President Donald Trump’s pro-growth economic agenda.
In cross-currency trade, the rupee fell back sharply against the British pound to finish at 86.27 per pound from 85.63 and also retreated against the Japanese Yen to close at 56.77 per 100 yens from 56.50 last weekend.
It dropped further against the Euro to settle at 76.53 as compared to 75.91.
In the forward market, premium for dollar moved up on the back of renewed paying pressure from corporates.
The benchmark six-month forward dollar premium payable for May edged higher to 118-120 paise from 117-119 paise and the far-forward contract maturing in November 2018 also gained to 253-255 paise from 252-254 paise Friday. (PTI)
