Mumbai, Nov 4: Market extended the record-breaking run for the second week by marking life-time highs, it gained 528.34 points to finish 33,685.56 and the broader Nifty went beyond 10,400-level to conclude 10,452.50.
Resuming positive, the key indices cruised the week underpinned by recovery spell in corporate earnings, stability in rupee along with key government reforms including stimulus in PSU banks and expanding core-sectors.
Though the market witnessed some profit-booking at record-levels, incurring small losses, the country’s jump in World Bank’s business ranking on ease in doing business notched-up investors’ confidence taking the key indices to dizzying heights at 33,733.71.
India improved its rank considerably as it went up 30 notches to the 100th place in the World Bank report.
The sustained flow of domestic liquidity has kept the markets afloat, the soft manufacturing PMI numbers were duly sidelined, also the market witnessed FII turn-around from net-sellers to buyers for couple of days.
Moreover, the strong global cues like US market closing on record highs and smart in rally in Asian market with global support on appointment of Federal Reserve Governor Jerome Powell as the new chief of the US central bank and the unveiling of tax reforms by House Republicans in Washington.
Opening the week on a higher at 33,260.10 points, the index marked all time historic high of 33,733.71, before closing the week at 33,685.56, showing a rise of 528.34 points or 1.59 per cent.
The Sensex garnered 767.26 points or 2.37 per cent during previous week.
The Nifty started the week at 10,353.85 and touched new historic milestone at 10,461.70.It ended at 10,452.50, up 129.45 points, or by 1.25 per cent.
Buying for the week was led by Realty, Consumer
Durable, Bank, HealthCare, Capital Goods, Oil&Gas, Teck, Power, FMCG and IPOs, while Metal, IT, Auto, witnessed profit-booking.
The second-line shares of S&P BSE Midcap and S&P BSE Smallcap also gained substantially.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 7,166.12 crore during the week, as per Sebi’s record including the provisional figure of November 03.
The S&P BSE Mid-Cap index gained 333.53 points or 2.04 per cent to settle at 16,713.11. The BSE Small-Cap index advanced by 552.37 points or 3.19 per cent to close at 17,856.03. Both these indices outperformed the Sensex.
Among sectoral and industry indices, Realty jumped by 8.57 per cent, consumer durables 3.94 per cent, bankex 3.54 per cent, healthcare 2.75 per cent, capital goods 1.68 per cent, oil&gas 0.97 per cent, teck 0.76 per cent, power 0.30 per cent, FMCG 0.27 per cent and IPO 0.11 per cent, while metal fell by 0.51 per cent, IT 0.33 per cent and auto 0.15 per cent.
Among the 31-share Sensex pack, 18 stocks rose and remaining 13 stocks fell during the week.
Bharti Airtel surged 11.60 per cent. The stock was the biggest gainer from the Sensex pack. The company reported an impressive growth at operating level in its Africa business in Q2 September 2017.
Axis Bank surged 11.46 per cent. The reports suggested that private equity firm, Bain Capital is in advanced talks with the bank to invest between USD 750 million and USD 1 billion, in what could be one of the largest private equity investments in the Indian banking sector.
It was followed by ICICI Bank 4.95 per cent, Lupin
4.84 per cent, HDFC 4.6 per cent, SBI 4.52 per cent, ONGC 4.25 per cent, Tata Motors 3.92 per cent, Tata Motors DVR 3.87 per cent and Cipla 2.62 per cent.
However, M&M fell by 3.95 per cent, followed by Hero Motoco 2.85 per cent, Tata Steel 2.39 per cent, Infosys 2.20 per cent, Bajaj Auto 2.03 per cent, HUL 1.50 per cent and ITC 1.47 per cent.
The total turnover during the week on BSE rose to Rs 34,759.16 crore as against last weekend’s level of Rs 25,064.52 crore, While NSE fell to 1,74,077.87 crore when compared to Rs 2,03,610.20 crore previously.
Gold prices continue bearish trend
Gold prices maintained its bearishness for the third week in a row, mirroring weak global markets and fall in demand from stockists and traders.
Traders said sentiment was downbeat largely in sync with a weak trend overseas and considerable fall in demand from local jewellers and retailers.
The yellow-metal shed a whopping 2.07 per cent in its third week downslide, or Rs 611 per 10 grams.
However, silver recaptured the Rs 39,000-mark due to increased offtake by industrial units and coin makers.
Traders attributed the rise in silver prices to pick up in demand from coins maker, driven by ongoing wedding season and also riding on positive global cues.
In worldwide trade, gold closed at a nearly three-month low Friday, as the US dollar index climbed to levels not seen since July on signs of a strong pickup in service-sector activity, pulling prices for the yellow metal down for the week.
December gold fell USD 8.90, or 0.7 per cent, to settle at USD 1,269.20 an ounce — the lowest finish for a most-active contract since early August. The contract ended the week with a 0.2 per cent loss for its third weekly decline.
In other metals, silver for December delivery fell 1.8 per cent to USD 16.834 an ounce, after surging nearly 3 per cent midweek. It saw a weekly rise of about 0.5 per cent.
In the New York Comex trade, gold for December delivery eased to USD 1,269.20 an ounce compared to last Friday’s December close of USD 1,271.80, while, silver for December contract rose to settle at USD 16.834 an ounce from USD 16.752 previously.
On the domestic front, standard gold (99.5 purity) resumed higher at Rs 29,250 per 10 grams from last Friday’s closing level of Rs 29,225, later it drifted lower to Rs 29,135 before ending at Rs 29,140, revealing a loss of Rs 85, or 0.29 per cent.
Pure gold (99.9 purity) also commenced positive at Rs 29,400 per 10 grams compared to preceding weekend level of Rs 29,375, later it dropped to Rs 29,285 before finishing at Rs 29,290, showing a loss of Rs 85, or 0.28 per cent.
Silver ready (.999 fineness) opened at stable Rs 38,860 per kilo at its previous weekend level, later it recovered to a high of Rs 39,475, before ending at Rs 39,385, registering a rise of Rs 525 per kilo, or 1.35 per cent.
Rupee bounces back
The Indian rupee staged an incredible comeback after a brief setback and ended at a fresh six-week high of 64.55 against the US dollar in an extremely low-volatile forex market on fresh unwinding of the American currency and also well-supported by favourable macro indicators.
After a two-week downfall, the home currency recouped by a whopping 50 paise, or 0.77 per cent.
This is the highest closing for the rupee since
September 20.
Overall forex market sentiment witnessed a sea change in the macroeconomic parameters after India jumped to 100th position in the World Bank’s ‘ease of doing business’ ranking following government’s strong policy measures to attract investments and revive the economy.
Adding more value, eight core sectors grew to a six-month high of 5.2 per cent in September, helped by a robust performance in coal, natural gas and refinery segments, official data showed.
Frantic unwinding of long dollar positions by foreign banks and speculative traders largely aided the recovery momentum.
Persistent foreign capital inflows against the backdrop of a breathtaking record-setting rally in local equities also boosted the rupee value.
According to the latest depository data, FPIs invested a net sum of Rs 2,806 crore in the stock markets and another Rs 15,132 crore in debt, taking the total to Rs 17,938 crore (USD 2.75 billion) during October 3-27.
During the week, foreign investors remained net buyers in the Indian equity market and bought USD 399.67 million as per stock exchanges data.
At the Interbank Foreign Exchange (forex) market, the local unit opened with a gap up at 64.88 against weekend close of 65.05 amid easing dollar pressure.
Keeping pace with the overall positive momentum, it touched a high of 64.47 before ending at 64.55, revealing a healthy rise of 50 paise, or 0.77 per cent.
The RBI fixed the reference rate for the USD at Rs 64.5764 and euro at Rs 75.3348, respectively.
Crude oil continued their ascent and traded above the key psycholigical USD 60-mark a barrel on the increased hope that OPEC will extend their production cut agreement.
On the global front, the dollar ended the week on a positive note as weaker-than-expected payrolls data failed to dent expectations for a December rate hike amid prospects for tax reform following news that the Senate had adopted a fiscal 2018 budget resolution.
The dollar index — a measure of the US currency against a basket of six trade-weighted major rivals rose to end at nearly four-month peak of 94.83 from preceding weekend level of 94.72.
British pound took a beating and plunged to fresh multi-years low after Bank of England raised interest rates for the first time in a decade by a quarter of a percentage point to 0.5 per cent and signalling the start of a gradual increase in borrowing costs.
The common currency euro remained under intense selling pressure throughout the week.
In cross-currency trade, the Indian currency continued its strong edge against the British pound for the second week and finished sharply higher at 84.37 per pound from 85.17 and strengthened against the Euro to close at 75.14 from last weekend level of 75.54.
The local currency also hardened against the Japanese Yen to settle at 56.56 per 100 yens from 57.00 earlier.
In the forward market, premium for dollar displayed a mixed pattern of trading during the week due to lack of market moving factors.
The benchmark six-month forward dollar premium payable for March edged up to 115-117 paise from 114-116 paise and the far-forward contract maturing in September 2018 also moved up to 257.75-259.75 paise as against 255-257 paise last Friday.
In global commodity trade, global oil prices rose to their near two-year high, supported by rising global demand and physical prices and continuing expectations that OPEC and other producing countries will extend a deal to cut output.
Global benchmark Brent futures traded up USD 1.55 at USD 62.27 a barrel. Brent has risen around 38 per cent since its low in 2017 reached in June.
US West Texas Intermediate (WTI) crude settled at USD 55.64 a barrel, its highest level since 2015, up USD 1.10 cents. WTI is around 30 per cent above its 2017 low hit in June. (PTI)
