Market extends weekly winning streak, up 438 points

Mumbai: Market extended its weekly winning streak for the sixth time in a row, gaining 438.54 points and registered all time new record high at 34,592.39, while the broader Nifty captured a new milestone of 10,600.

Bulls stayed strong as the market saw record-making run during most trading sessions of the week, barring some profit-booking on account of slight caution over quarterly results season as well as sentimental sell-off on concerns over apex court after a virtual revolt against Chief Justice by four senior judges.

However, the bullish undertone on growth, optimism over earnings and upcoming budget along with good domestic liquidity flows propelled the market to record highs sidelining a cut in GDP growth estimate by Central Statistics Office (CSO) last week, lacklustre earning from IT bellwether TCS.

The market also climbed on bullish global peers, while IT index climbed on account of relief on US H1B visa norms.

The key indices built on gains well supported by buying in index heavyweights like  Reliance, Infosys, Coal India and ITC, also strong accummulation witnessed in midcap and smallcap shares.

The Sensex started the week higher at 34,216.33 and hovered between marking all time new highs at 34,638.42 and low of 34,216.33 before settling the week new record highs at 34,592.39, showing a gain 438.54, or 1.28 per cent. (The Sensex garnered 1,681.71 points or 5.12 per cent in during previous five week sessions).

The Nifty also resumed the week up at 10,591.70 and marked above the key milestone of 10,600-level at 10,690.40 and low of 10,588.55 before ending the week at record closing at 10,681.25, showing a gain of 122.40 points, or 1.16 per cent.

Realty gained the most followed by IT, Teck, IPO, Oil&Gas, Metal, FMCG, CapitalGoods, Banks, HealthCare and Consumer Durables.

Power and Auto segments saw profit-booking. Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 496.47 crore during the week, as per Sebi’s record including the provisional figure of January 12, 2018.

The S&P BSE Mid-Cap index advanced rose 67 points or 0.37 per cent to settle at 18,137.03. The S&P BSE Small-Cap index gained rose 288.27 points or 1.46 per cent to settle at 19,993.19. Both these indices outperformed the Sensex.

Among sectoral and industry indices, realty climbed by 5.51 per cent followed by IT 4.50 per cent, teck 2.88 per cent, IPO 2.54 per cent, oil&gas 1.26 per cent, metal 1.25 per cent, FMCG 0.96 per cent, capital goods 0.80 per cent, bankex 0.56 per cent, healthcare 0.38 per cent and consumer durables 0.11 per cent.

However, power fell by 0.84 per cent and auto 0.24 per cent.

Among the 31-share Sensex pack, 21 stocks rose and remaining 10 stocks fell during the week.

State-run Coal India was the top Sensex gainer last week. The stock surged 10.49 per cent to Rs 308 after the company’s board at its meeting held 8 January 2018, approved revision of non-coking coal prices with effect from 9 January 2018.

It was followed by infosys 6.55 per cent, TCS 3.29 per cent, Wipro 2.91 per cent, Reliance 2.57 per cent, Yes Bank 2.28 per cent, ITC 1.75 per cent and ICICI Bank 1.60 per cent.

However, Telecom major Bharti Airtel was the top Sensex loser last week. The stock fell 5.67 per cent to Rs 509.40.

It was followed by Bajaj Auto 3.13 per cent, NTPC 3.02 per cent, Power Grid 2.19 per cent, SBI 1.61 per cent and Hero Motoco 1.35 per cent.

The total turnover during the week on BSE rose to Rs 27,137.55 crore as against last weekend’s level of Rs 25,394.12 crore and NSE moved up to 1,84,611.77 crore compared to Rs 1,68,820.04 crore previously.

Gold demand increases

Gold prices continued its winning-run for the fifth straight week at the domestic bullion market following sustained investors offtake as well as good stockist buying lifted by firm overseas cues.

Bullion traders said sentiment remained firm on the back of a overseas up-trend and increased buying by jewellers to meet wedding season demand.

On a weekly basis, yellow-metal gained 3.52 per cent or Rs 1,335, while, white-metal too gained 5.98 per cent or Rs 2,230 in five-weeks.

Elsewhere, silver too followed suit on increased offtake by industrial units and coin makers.

In worldwide trade, Gold prices marked a fresh four-month high to tally a fifth week of gains in a row, finding support as the dollar extended its earlier decline despite a slightly higher-than-expected climb in core US inflation.

Gold saw a weekly gain of roughly 1 per cent. It tallied a fifth week of consecutive gains, the longest since April. Month to date the metal has climbed 2.2 per cent.

February gold rose USD 12.40, or 0.9 per cent, to settle at USD 1,334.90 an ounce. Prices finished at the highest for a most-active contract since Sept 11.

In the New York Comex trade, gold for February delivery climbed to USD 1,334.90 an ounce compared to last Friday’s close of USD 1,322.20, while, silver for March contract fell to end at USD 17.141 an ounce from USD 17.285.

On the domestic front, standard gold (99.5 purity) resumed higher at Rs 29,465 per 10 grams from last Friday’s closing level of Rs 29,425, it rose to Rs 29,715 before settling at Rs 29,830, revealing a gain of Rs 405, or 1.37 per cent.

Pure gold (99.9 purity) also commenced higher at Rs 29,615 per 10 grams compared to preceding weekend level of Rs 29,575, it regained to climbed at Rs 29,865 before closing at Rs 29,980, showing a rise of Rs 405, or 1.37 percent.

Silver ready (.999 fineness) opened negative at Rs 38,655 per kilogram from last Friday’s closing level of Rs 38,725, it also moved between Rs 38,885 and Rs 38,475 before finishing at Rs 38,850, registering a gain of Rs 125 per kilo, or 0.32 per cent

Rupee suffers setback

The Indian rupee suffered a major setback and endured a sharp reversal in fortunes against the US currency on fresh bouts of dollar demand amid fears of a flare-up in global crude prices.

Breaking an extreme bullish uptrend, the home currency retreated sharply from a fresh three-year high and ended lower by 26 paise at 63.63, capping a spectacular two-week upsurge.

The home currency had strengthened by a whopping 68 paise.

Though expectations of more inflows from foreign investors after the government allowed foreign direct investment across several sectors, largely cushioned the fall.

It was a highly volatile week for the forex market and witnessed wild swings following a sudden revival of the elasticity pessimism on hardening worries over fiscal slippage and higher inflation pressure after international crude oil prices hit a new three-year high.

The expensive oil prices have been making some headlines recently worldwide.

Fresh demand for the American currency from banks and importers alongwith the broad based dollar strength against some currencies overseas put the rupee on backfoot despite a record breaking rally in local equities, a forex dealer said.

The sudden spike in crude prices can play spoilspot for the currency market, which started the new year with a bang, he added.

The Indian rupee hit a fresh 3-year high of 63.37 against the US dollar last Friday.

But, India’s oil demand grew at its slowest pace in four years in 2017 at only 2.3 percent.

In the meantime, country’s foreign exchange reserves surged by USD 1.758 billion to mount a new record high of USD 411.124 billion in the week to January 5, the RBI said.

In the international commodity front, global crude prices rallied for the fourth straight week with the Brent topping the key USD 70 a barrel for the first time in more than three years fueled by a surprise drop in US production and lower inventories.

Brent crude futures settled at USD 69.80 a barrel.

At the Interbank Foreign Exchange (forex) market, the home currency opened the week with a strong footing at 63.33 from last weekend close of 63.37 on steady dollar selling from exporters and banks.

It touched a fresh three-year high of 63.25 before retreating due to mmense dollar pressure.

The Indian currency, later plummeted to hit a fresh 2018 low of 63.85 in early breakneck selloff before similarly climbing back to regain some lot ground to end at 63.63, showing a loss of 26 paise, or 0.41 per cent.

The RBI, meanwhile fixed the reference rate for the USD at Rs 63.5263 and Euro at Rs 76.5301, respectively.

On the global front, the dollar slumped to a more than three-year low against the euro on Friday, as the common currency extended its gains on hopes that European Central Bank policymakers are preparing to reduce their vast monetary stimulus program.

The dollar index, which measures the greenback’s value against a basket of six major currencies, was down at 91.10 in early trade.

Elsewhere, the Euro surged ahead to hit its highest level in three-years against the US dollar following a

breakthrough in German coalition talks to form a so-called Grand coalition.

The British Pound continues to push higher against the greenback, snapping a 3-day slide.

In cross-currency trade, the rupee tumbled by a sharp 131 paise against the Japanese Yen to end at 57.27 per 100 yens from last weekend close of 55.96.

The local unit also retreated sharply against the euro to finish at 77.19 from 76.37 and drifted back British pound to settle at 86.77 per pound from 85.81 previously.

In the forward market, premium for dollar dropped further owing to sustained receiving from exporters.

The benchmark six-month forward dollar premium payable for June slumped to 129-131 paise from 133-135 paise and the far-forward contract maturing in December 2018 also declined to 266.50-268.50 paise from 269-271 paise last Friday. (PTI)

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