Mumbai, Dec 16: The benchmark Sensex advanced for second straight week in row, gaining 212.67 points to close 33,462.97, while the broader Nifty ended above the key 10,300-level to end at 10,333.25.
The stock market maintained its volatile scenario for the second consecutive week, though it managed to building-up on last week gains to inch closer towards all-time highs.
The market started on a positive note, helped by strong US payroll-data lifting the sentiment, the later two sessions saw the key indices witnessing heavy sell-off due to rising global oil prices and caution ahead of the release of key macro-numbers of CPI inflation and IIP data in midst of uncertainty on Gujarat elections’ exit poll-result.
However, indices did a turn-around ahead of exit-poll results, while the string of survey after the market hours showed the ruling BJP sweeping to clear victory in Gujarat and Himachal Pradesh.
The fag-end session saw the key indices opening gap-up on investor optimism, as sustained buying spree led the bulls finally winning the battle and the bourses posting good gains for the week.
The Sensex started the week higher at 33,317.72 and hovered between 33,621.96 and 32,886.93 before settling the week at 33,462.97, showing a gain of 212.67, or 0.64 per cent. (The Sensex gained 417.36 points or 1.27 per cent in during last week sessions).
The Nifty also resumed the week higher at 10,310.50 and traded between 10,373.10 and 10,141.55 to close at 10,333.25, showing a rise of 67.60 points, or 0.66 per cent.
Buying was seen sectors led by Oil&Gas, IT, Auto, Metal, Teck, Banks and HealthCare. Realty, Consumer Durables, PSU Bank, FMCG, Power and Capital Goods witnessed profit-booking.
The broader indices of midcap and and smallcap company shares underperformed the frontline indices.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 606.84 crore during the week, as per Sebi’s record including the provisional figure of December 15.
The S&P BSE Mid-Cap index fell 69.64 points, or 0.41 per cent, to settle at 16,974.72. The S&P BSE Small-Cap index fell 41.23 points, or 0.23 per cent, to settle at 18,170.65.
Among sectoral and industry indices, consumer durables fell by 36.48 per cent, realty 1.84 per cent, power 1.19 per cent, IPO 1.19 per cent, capital goods 0.82 per cent, and FMCG 0.09 per cent, while oil&gas rose by 1.10 per cent, auto 0.89 per cent, IT 0.81 per cent, metal 0.77 per cent, teck 0.37 per cent, bankex 0.32 per cent and healthcare 0.09 per cent.
Among the 31-share Sensex pack, 16 stocks fell and remaining 15 stocks rose during the week.
Dr. Reddy’s Laboratories was the top Sensex gainer last week. The stock rose 8.55 per cent to Rs 2,372. The company said that the company has received an Establishment Inspection Report (EIR) from the US drug regulator as closure of audit for the Bachupally, Hyderabad facility.
Auto major Mahindra & Mahindra rose 6.75 per cent to Rs 1,482.65. The company announced that it plans to increase prices of its passenger and commercial vehicles by up to 3 per cent effective from January 1, 2018.
It was followed by Lupin 4.86 per cent, HDFC 2.62 per cent, Adani Ports 2.38 per cent, Coal India 2.38 per cent, Infosys 2.19 per cent and Kotak Bank 1.99 per cent.
Drug major Cipla was the top Sensex loser last week. The stock fell 4.60 per cent to Rs 575.85.
It was followed by Tata Motors DVR 3.04 per cent, ICICI Bank 2.29 per cent, TCS 2.04 per cent, Power Grid 1.72 per cent, NTPC 1.50 per cent, Asian Paints 1.50 per cent, Tata Motors 1.44 per cent and L&T 1.31 per cent.
The total turnover during the week on BSE rose to Rs 22,617.36 crore as against last weekend’s level of Rs 20,873.96 crore and NSE climbed to 1,37,439.25 crore compared to Rs 1,33,750.74 crore previously.
Gold recovers
Gold snapped four weeks of sluggishness to recover slightly for the current week on better investors and stockists offtake, it was supported by mild jewellery demand amid turnaround in international market.
Traders said sentiments bolstered after gold edged higher in global markets lifted due to lacklustre dollar after tumbling in the previous session following the US Federal Reserve’s widely expected decision to raise interest rates amid unchange in its future outlook on rates.
Moderate local buying interest due to marriage season somewhat supported the gold.
Silver also gained owing to good speculative buying as well as industrial offtake.
Globally, gold futures ended with a modest climb to tally their first weekly gain in a month in the wake of the Federal Reserve’s recent decision to raise interest rates.
February gold tacked on 40 cents to settle at USD 1,257.50 an ounce. For the week, it rose roughly 0.7 per cent.
Among other metals, March silver gained 0.8 per cent to USD 16.063 an ounce, tacking on 1.5 per cent for the week.
In the New York Comex trade, gold for February delivery rose to USD 1,257.50 an ounce compared to last Friday’s close of USD 1,248.40 and silver for March contract gained to end at USD 16.063 an ounce from USD 15.823.
On the domestic front, standard gold (99.5 purity) resumed higher at Rs 28,525 per 10 grams from last Friday’s closing level of Rs 28,495, it hovered between Rs 28,625 and Rs 28,355 before settling at Rs 28,550, revealing a rise of Rs 55, or 0.19 per cent.
Pure gold (99.9 purity) also commenced higher at Rs 28,675 per 10 grams compared to preceding weekend level of Rs 28,645, it traded between Rs 28,775 and Rs 28,505 before closing at Rs 28,700, showing a gain of Rs 55, or 0.19 per cent.
Silver ready (.999 fineness) opened positive at Rs 36,720 per kilogram from last Friday’s closing level of Rs 36,620, it also moved between Rs 37,120 and Rs 36,450 before finishing at Rs 36,795, registering a gain of Rs 175 per kilo, or 0.48 per cent.
Rupee surges to three-month high
After a brief consolidation phase, the rupee shot-up to end at a fresh three-month high of 64.04 against the beleagured dollar on sustained selling of the US currency by exporters and banks even as the Federal Reserve raised interest rates once again.
Stretching the stunning rally for the fifth-straight week, the home currency garnered a solid 41 paise.
It has appreciated by a whopping 112 paise during the multi-week rally.
The Indian unit largely withstood volatility and impact from the latest US central bank rate hike overnight even as headline inflation accelerated further to 3.93 per cent in November.
Overall currency market sentiment turned extremely bullish after the exit poll outcomes predicted BJP’s win in Gujarat for the sixth time and a clean sweep in Himachal Pradesh elections.
It was further supported by unwinding of long-dollar positions by speculators and some foreign banks with the US dollar down on shaky outlook for the tax reform progress.
Big-picture economic indicators like improving current account deficit and abundant FII inflows largely weighed on the trading front, a forex dealer said.
A smart rally in local equities also supported the rupee momentum.
It was further supported by unwinding of long-dollar positions by speculators and some foreign banks with the US dollar down on shaky outlook for the tax reform progress.
Big-picture economic indicators like improving current account deficit and abundant FII inflows largely weighed on the trading front, a forex dealer said.
In global commodity trade, crude prices fell back from their fresh 2-year highs earlier this week, though prices were supported by continuing outage of a North Sea pipeline and OPEC-led production cuts amid concerns that the global supply surplus could return in 2018 due to rising US output.
The International benchmark Brent crude future settled down slightly with a 0.3 per cent fall to USD 63.23 a barrel.
In the meantime, country’s foreign exchange reserves reserves declined by USD 1.044 billion to USD 400.897 billion in the week to December 8 due to a steep fall in foreign currency assets, the Reserve Bank data showed.
Foreign investors and funds pulled out more than Rs 4,000 crore from the domestic stock markets this month so far, mainly due to rising crude prices and widening fiscal deficit.
The outflow comes following an eight month high inflow of Rs 19,728 crore in November.
At the Interbank Foreign Exchange (forex) market, the rupee resumed higher at 64.35 from last Friday’s close of 64.45 on steady dollar selling.
After briefly hitting a low of 64.56 in a mid-week sell-off, the local currency staged a smart rebound to touch a high of 64.01 towards the fag-end trade.
It finally settled the week at 64.04, showing a healty gain of 41 paise, or 0.64 per cent.
The RBI fixed the reference rate for the USD at Rs 64.0958 and euro at Rs 75.5241, respectively.
On the global front, the US dollar regained some lost ground towards the weekend as Republican negotiators in the US Congress put the finishing touches on a sweeping tax overhaul, raising expectations that the bill would be passed by year-end.
The dollar index, which tracks the greenback against six major currencies, was higher at 93.96.
In cross-currency trade, the rupee rebounded sharply against the British pound to end at 85.88 per pound from 86.81 and also strengthened against the Euro to finish at 75.59 as compared to 75.64.
The local currency, however fell back against the Japanese Yen to close at 57.10 per 100 yens from 56.76 last weekend.
In the forward market, premium for dollar remained weak due to sustained receiving from exporters.
The benchmark six-month forward dollar premium payable for May moved down to 127.50-129.50 paise from 131-133 paise and the far-forward contract maturing in November 2018 also edged down to 266-268 paise from 268.50-270.50 paise last Friday. (PTI)