Stocks: The S&P BSE benchmark Sensex bounced back of 513 points to end at a lifetime closing high of 21,196.81 on fresh buying mainly in banking, FMCG PSU, capital goods, realty, auto and metal counters triggered by strong capital inflows and hopes of growth in the economy.
Foreign institutional investors continued their buying spree and invested a net Rs. 4,865.85 crore during the week, including the provisional figure of November 1.
Short-covering due to expiry of October contracts also gave a boost to the market.
Markets gained after the Reserve Bank of India (RBI) increased the repo rate by 25 basis points on Tuesday, to curb inflation and also improved liquidity for banks, which was as per marketmen's expectations.
The Sensex opened higher at 20,696.51 and shot up further to intra-day all-time high of 21,293.88 and also finished the week at a lifetime closing high at 21,196.31, showing a sharp gain of 513.29 points or 2.48%. The index surpassed the previous intra-day record of 21,206.77 on January 10, 2008.
The NSE-50 share Nifty also rose by 162.30 points or 2.64% to finish at 6,307.20, but failed to surpass its historic closing high of 6,312.45 recorded on November 5, 2010.
The US Federal Reserve's decision this week to continue with its bond-buying stimulus programme eased concerns about foreign funds pulling out capital from emerging markets.
The market also got a boost when Union Finance Minister P Chidambaram said that the current account deficit is under control and the fiscal deficit target will be met. Major gainers were SBI (9.42%), Maruti Suzuki (8.56%), M&M (6.60%), Bharti Air (6.58%), HDFC (5.58%), Hindalco (5.49%), Coal India (4.80%),BHEL (4.59%), Tata Steel (4.43%), Jindal Steel (4.17%), Larsen (3.63%), Hero Motocorp (3.27%) and Tata Power (3.06%).
However, ITC dropped by 3.32%, Infosys 1.57% and Sun Pharma 0.85%.
Amomg the S&P BSE indices, Bankex rose by 6.68%, CD 5.30%, PSU 4.42%, CG 4.25%, Realty 4.13%, Auto 3.70%, Metal 3.68%, Power 2.62% and Oil&Gas 2.28%.
Small-cap and Mid-indices also firmed up by 3.55% and 1.95% on persistent buying from retail investors.
Total market turnover at BSE and NSE rose to Rs. 11,154.47 crores nad Rs. 63,608.66 crores respectively from the last weekend's level of Rs. 10,218.99 crs and Rs. 57,050.94 crs.
The RBI increased the policy repo rate to 7.75% and cut the marginal standing facility rate to 8.75%, as was widely expected. It also increased liquidity provided through seven-day and 14-day term repos.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said,"Indian Equity markets are being blessed by FIIs money, in the absence of retail investors and has traded at an all time high this week.
The markets had already factored in the interest rate policy decisions and hence as expected the markets did not react much to the 25 basis point hike in Repo Rate and a 25 basis points decrease in MSF. However a weak projection of GDP from 5.5 pct to a low of 5 pct did create some hiccups but was over powered by the strong FII buying in the market."
"The Economic Calendar has important data for US GDP, Jobless Claims & Employment change due next week. These data points are expected to be weaker, which will prompt more buying by FIIs in emerging and Asian markets. The CNX Nifty is expected to trade in the range of 6239 to 6326 and if there is no Fundamental news it might breach 6350, similarly the BSE Sensex is expected to trade in the range of 20988 to 21252 which means it's expected to be in psychological 21000 marks and if there is no Fundamental news might reach till 21500," he added.
27 scrips out of the 30-share sensex ended in green while retmainin three finished in red.
Forex: The rupee continued its downward march for the third week in a row and closed down by 28 paise at over two-week low of 61.74 against the Greenback following month-end dollar demand from importers amid firm $overseas.
However, strong local equities and continued capital inflows restricted the rupee fall to some extent, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the local unit commenced better at 61.35 a dollar from previous weekend's close of 61.46 and moved in a range of 61.23 and 61.96 before settling the week at 61.74, exhibiting a fall of 28 paise or 0.46 pct.
In three week, it has plunged by 67 paise or 1.10 pct.
The Indian benchmark sensex closed the week higher by over 513 points or 2.48 pct on the back of strong FIIs inflows. Foreign Institutional Investors (FIIs) bought shares worth $761.38 mln during the first four days of the week.
The dollar showed recovery after the Federal Reserve decided to press on with $85 bln in monthly bond purchases, saying it needs to see more evidence that the economy will continue to improve.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,"This week sensex hit a record high crossing its previous all-time high of Jan. 10, 2008, with the help of foreign inflows of around $3.5 billion since the U.S. Federal Reserve unexpectedly delayed tapering of its monetary stimulus at a meeting on September 18.
The Rupee is trading range bound for the last couple of months after having seen as much as 20% fall to a record low in late August has been recovered mainly by foreign fund inflows into the stocks.
FIIs have bought $16.5 bln worth of shares so far this year. The trading range for the Spot USD/INR pair is expected to be within 61.20 to 62.80."
"Recommended to be cautious and Sell USDINR Futures on rise with the appropriate stop loss as Rupee is expected to appreciate against dollar. Pivot Point for the Pair is at 61.92 and below is the Support and Resistance levels," he added.
"Fiscal drag is also poised to diminish next year, from 1.5 percentage points (ppts) to 0.8ppts. Granted, the political climate remains a cause for concern, but even here we are seeing a glimpse of light.
The bottom line is that while the Fed is still waiting on evidence that the recovery will gain speed, this is likely to happen next year. When it does, the Fed will slowly begin unwinding asset purchases," he further commented.
The benchmark six-month forward dollar premium payable in April closed the week at 241-243 paise. Far-forward contracts maturing in October ended at 457-459 paise.
The RBI fixed the reference rate for the US dollar at 61.9046 and for the euro at 83.8775 from 61.6250 and 85.1350 last weekend, respectively.
The rupee bounced back against the pound sterling to 98.57 from preceding weekend's close of 99.52 and also recovered smartly against the euro to 83.47 from 84.79.
It too shot up against the Japanese yen to 62.81 per 100 yen from last weekend's close of 63.16.
Oils and oilseeds: Edible and non-edible oils traded bullish at the oils and oilseeds market during the week under review.
Groundnut oil prices spurted during the fag-end of the week due to heavy stockists buying as well as retail demand on the back of ensuing festivities.
Refined palmolein surged on rising seasonal demand owing to good retail offtake amidst firming trend overseas.
In global market, palmoil flared 7.3% at $827 a tonne on the Malaysia Derivatives Exchange.
Castorseeds bold and castoroil commercial recovered on sustained demand from shippers and soap manufacturers.
Castorseeds futures also rebounded on heavy speculative buying following higher export enquiries.
Linseed oil rose on rising seasonal demand from paints and allied industries.
In the edible oils segment, groundnutoil opened steady at Rs. 860 and declined immediately to Rs. 850 before finishing at Rs. 880 from last weekend's level of Rs. 860, showing a net rise of Rs. 20 per 10 kg.
Refined palmolein resumed slightly higher at Rs. 578 and moved up further to Rs. 602 before ending at Rs. 605 from preceding weekend's level of Rs. 576, showing a gain of Rs. 9 per 10 kg
In the non-edible section, castorseeds bold opened higher at Rs. 3,460 and gained further to Rs. 3,510 before settling to close at Rs. 3,500 from last weekend's level of Rs. 3,455, showing a net gain of Rs. 45 per 100 kg.
Castoroil commercial resumed slightly higher at Rs. 722 and moved up further to Rs. 732 before finishing at Rs. 730 from its preceding weekend's level of Rs. 721, showing a modest gain of Rs. 9 per 10 kg.
Linseedoil opened higher at Rs. 760 and later moved up to settle at Rs. 790 from its preceding weekend's level of Rs. 750, showing a smart rise of Rs. 40 per 10kg.
Moving to the futures section, castorseeds for December delivery resumed higher at Rs. 3,750 and gained further to Rs. 3,820 before concluding at Rs. 3,810 from last Saturday's closing level of Rs. 3,690, showing a smart gain of Rs. 120 per tonne.
SUGAR: Sugar prices declined in the wholesale market at national capital during the past week following plenty of ready stocks on regular supply from mills against the ongoing festival demand.
Marketmen said besides higher demand for the ongoing festive season, excess supply from mills mainly influenced the sentiment.
Sugar mill delivery M-30 and S-30 prices fell to Rs. 2870-3270 and Rs. 2860-3240 from last levels of Rs. 2880-3285 and Rs. 2870-3255, showing a fall of Rs. 15 per quintal.
Sugar ready M-30 and S-30 prices also eases from Rs. 3070-3280 and Rs. 3060-3260 to Rs. 3060-3280 and Rs. 3050-3260, revealing a marginal loss of Rs. 10 per quintal.
Among millgate including duty section, Sugar Mawana and Asmoli lost Rs. 20 each to end at Rs. 3025 and Rs. 3210 per quintal.
Sugar Kinnoni, Budhana and Thanabhavan prices shed Rs. 15 each to Rs. 3270, Rs. 3000 and Rs. 2995 per quintal, respectively.
Prices of Baghpat, Anupshar, Morna, Nazibabad, and Khatuli fell by Rs. 10 each to Rs. 2900, Rs. 2870, Rs. 2900 and Rs. 3000 per quintal.
JAGGERY: Gur prices dropped in the wholesale Jaggery market at the national capital during the week under review following heavy arrivals of new stocks amid reduced offtake by stockist and retailers, witnessing losses up to Rs. 550 per quintal.
Muzaffarnagar and Muradnagar gur markets also showed a sharp fall of Rs. 550 per quintal on mounting of stocks.
In Delhi, gur Dhayya prices tumbled from Rs. 3400-3500 to finish at Rs. 2850-2950, resulting a loss of Rs. 550 per quintal. Gur Pedi slumped by Rs. 500 to settle at Rs. 3300-3400 from Rs. 2800-2900 per quintal.
Gur Chakku prices slipped from Rs. 3200-3250 to Rs. 2900-3000, showing a fall of Rs. 300 per quintal, while shakkar prices plunged from Rs. 3500-3600 to Rs. 32300-3300, depicting loss of Rs. 300 per quintal.
At Muzaffarnagar, prices of gur Khurpa plummeted from Rs. 3000-3050 to Rs. 2450-2500 per quintal.
Gur Ladoo and Chakku prices fell to Rs. 2700-2750 and Rs. 2650-2800 from Rs. 3150-3200 and Rs. 3100-3200 per quintal, respectively, revealing a sharp fall of Rs. 450.
Gur Raskat prices dropped from Rs. 2650-2750 to Rs. 2400-2450 per quintal due to weak demand from beer and cattle-feed making industries.
Turing to Muradnagar, prices of gur Pedi and Dhayya enquired lower at Rs. 2700-2750 each from last levels of Rs. 2950-3000 and Rs. 3000-3050 per quintal.
Bullion: Both the precious metals, gold and silver remained weak at the bullion market during the past week on heavy sell-off by stockists and investors, triggered by a weak global trend.
Traders said heavy selling by stockists triggered a weak global trend where gold fell to two-week low as US manufacturing data in October increased at a faster pace than forecast, boosting the dollar and reducing demand for the precious metals as a safe haven.
Gold in New York, which normally set price trend on the domestic front, dropped 2.9% and silver by 3.5% this week.
Besides, investors shifting their funds from weakening bullion to surging equity, which climbed to record high also influenced the sentiment to some extent, they added.
In the national capital, gold of 99.9 and 99.5% purity commenced lower at Rs. 32,350 and Rs. 32,150 and fell further to close at Rs. 31,300 and Rs. 31,100 per ten grams, respectively, showing a significant fall of Rs. 1,270 each.
Sovereign, however, moved between gains and losses on alternate bouts of buying and selling and settled at last level of Rs. 25,300 per piece of eight gram.
Silver ready lost Rs. 750 at Rs. 49,150 per kg and weekly-based delivery by Rs. 1,025 at Rs. 48,675 per kg this week. Silver coins also tumbled by Rs. 1,000 to Rs. 87,000 for buying and Rs. 88,000 for selling of 100 pieces.
Bullion: Gold retreated sharply from its multi-month highs during the highly volatile week following a massive unwinding from stockists and speculators amid worries about demand after its recent sharp surge.
Despite the ongoing biggest gold-buying festival -Dhanteras - considered an auspicious day to buy the yellow metal failed to trigger any buying frenzy as retail consumers stayed on the sidelines, expecting further fall in prices.
Volatile global situation amid QE tapering uncertainty further dampened the situation.
A breather was long overdue as the shiny metal had rallied heavily in the last few trading sessions on the back of frantic speculative buying.
Silver also fell back below the Rs. 50,000 per kg level due to heavy stockists selling coupled with lower industrial buying support.
On the global front, gold lost steam and plummeted with a sudden mid-week crash rattled by renewed concerns of the Federal Reserve tapering stimulus programs in the coming months earlier than expected.
In New York, gold for December delivery slipped to USD 1,313.20 an ounce from last weekend's level of $1,352.50 and silver for December contract declined to $21.84 an ounce as compared to $22.64 previously.
In the domestic market, standard gold (99.5 purity) resumed slightly higher at Rs. 32,060 and plummeted later to finish at Rs. 30,370 from preceding weekend's level of Rs. 32,015, showing a massive fall of Rs. 1,645, or 5.14% per ten grams.
Pure gold (99.9 purity) opened better at Rs. 32,205, but later slumped to conclude at Rs. 30,520 over its previous close of Rs. 32,165, registering a sharp loss of Rs. 1,645, or 5.11%, per ten grams.
Silver ready (.999 fineness) commenced higher at Rs. 50,640, but later reacted downwards to a low of Rs. 49,320 before concluding at Rs. 49,795 from last Saturday's closing level of Rs. 50,540, exhibiting a loss of Rs. 745 or 1.47% per kg.