The benchmark BSE Sensex and CNX Nifty moved up by more than 2% during the week, logging their all-time closing peaks on hectic buying by investors amid hopes of reforms from the incoming Narendra Modi-led government.
Markets ended in the green for the third consecutive week as both the indices gained by more than 10% in three weeks on persisting buying mainly in realty, power, PSUs, metal, consumer durables, capital goods and refinery sectors.
A clear mandate for the BJP has rekindled hopes for structural reforms and better investment climate and the country's growth is likely to accelerate to 6.5% in FY16, a Goldman Sachs report said.
The BSE Sensex resumed higher 24,340.32 and hovered in a range of 24,745.86 and 24,107.99 before ending the week at 24,693.35, showing a gain of 571.61 points, or 2.37%.
The NSE 50-share Nifty also rose by 164.10 points or 2.28% to finish the week at 7,367.10.
Country's largest bank SBI gained by 14.10% despite decline in the Q4 net profit but asset quality showed signs of improvement. "SBI reported healthy performance on asset quality front while operating performance came ahead of our estimates," said Angel Broking.
Investors heavily bought power stocks, including NTPC and Tata Power, on reports that the Modi-led NDA government is likely to harness solar power sector and give a fillip to development of offshore wind energy.
Foreign investors sentiment was bullish after credit rating agency Moody's said landslide victory of BJP-led NDA in polls is credit positive for India as a stable central government is expected to address economic woes. They invested net Rs. 1,522.10 crore during the week as per Sebi's record including the provisional figure of May 23.
Second-tier stocks attracted heavy buying interest from retail investors and notched handsome gains. The BSE smallcap and BSE midcap indices closed up 15.75% and 11.62% respectively, outperforming the Sensex.
While the rising rupee cast its shadow on earnings of IT and Pharma sectors after the local currency surged to 11-month high against the US dollar to 58.33.
Eighteen scrips out of the 39-share Sensex ended higher while 12 others closed lower.
Other major gainers were SSLT (24.60%), NTPC (21.60%), BHEL (18.80%), Tata Power (16.70%), Maruti Suzuki (10.70%), Tata Steel (8.42%), Hindalco Ind (7.73%), Axis bank ((6.15%), Larsen (6.01%), ONGC (5.86%) and HDFC (5.37%) and RIL 4.38% while ITC dropped by 6.91%, Sun Pharma 4.65%, Tata Motor 4.09% and Dr Reddy's Lab 4.22%.
Among the S&P sectoral indices, Realty rose by 23.13% followed by Power 17.29%, PSU 13.65%, Metal 13.11%, Consumer Durbale 10.12%, Capital Goods 9.59%, Oil&Gas 4.90 ct, Bankex 3.11% and Auto 2.46% while HC dropped by 2.42%, FMCG also 2.42% and IT by 2.34%.
The total turnover at BSE and NSE rose to Rs. 26,841.37 crores and Rs. 1,29,868.91 crores respectively from 21,792.18 and Rs. 1,13,792.38 crs.
Forex: The Indian rupee continued to rule firm against the American currency for the fourth consecutive week, surging by 27 paise to end the week at 58.52 per dollar on persistent selling of dollars by banks and exporters on hopes of more foreign capital inflows into equity markets on expectation of more reforms from the new government.
The rupee resumed higher at 58.54 per dollar as against the last weekend's level of 58.79 at the Interbank Foreign Exchange (Foerx) Market and firmed up further to 11-month high of 58.33 per dollar before ending the week at 58.52, showing a gain 0.46%.
It has gained by 208 paise or 3.43% during the last four weeks. It moved in a range of 58.33 and 58.87 during the week.
The Indian benchmark S&P BSE Sensex flared up by 571.61 points or 2.37%, while FIIs infused %189.45 mln in the first four days of the week.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said, "Rupee continued to appreciate this week also. In last four weeks including this week, the rupee has appreciated more than 3% with the help of strong local equities and FIIs inflow. Strong government always helps the nation?s economy to grow at a good rate and in these election voters of India have given clear majority to BJP to form a strong government under the leadership of Modi".
"Investors and FIIs are looking forward towards India to grow at a good pace to compete with other emerging countries. The next major support for USD/INR pair is at 58.00 levels, near to this levels RBI is expected to intervene and also importers are expected to enter in the market to take the advantage of already appreciated Rupee" he added.
Bullion: Both valuable metals gold and silver continued their downslide for the fourth week in a row on lack of demand from retailers amid unwinding of long positions.
Yellow metal plunged after the Reserve Bank of India (RBI) eased curbs on import. The apex bank on Thursday eased gold import norms by allowing select trading houses, in addition to banks, to procure the precious metal to boost exports.
White metal, however, traded mixed in the week and closed with losses on lack of industrial demand.
Sustained rise in the rupee value, which closed up by 27 paise or 0.46% during the week, also aided the down trend in both the precious metals.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services said," The bullion market observed weak trend in this trading week. The Markets got some correction as good housing data of US economy was observed on the first trading day then following the uncertainty in Ukarine it again observed a bullish trend. The World gold Council Report was released in this week which again brought some correction is Gold. In the coming week the trading technicals are suggesting sideway down trend for Gold & Silver."
Meanwhile globally, gold prices declined on better-than-expected data from US and rise in world equities. Silver, however, edged up.
In New York, gold for June delivery declined to %1,291.70 an ounce on Friday as against %1,293.40 an ounce last weekend, while silver for July contract improved further to %19.42 an ounce from %19.33 an ounce.
Standard gold (99.5 purity) commenced sharply lower at Rs. 28,885 per 10 grams and continued to decline further to settle the week at Rs. 27,695 from Rs. 29,020 last weekend, exhibiting a drop of Rs. 1,325.
Pure gold (99.9 purity) also resumed lower at Rs. 29,035 per 10 grams from Rs. 29,170 previous weekend and remained weak for most of the week to end at Rs. 27,845, revealing a fall of Rs. 1,325.
Silver ready (.999 fineness) opened higher at Rs. 42,130 per kg from Rs. 41,820 last weekend but declined later to conclude the week at Rs. 41,670, showing a loss of Rs. 150.
Forward dollar premiums firmed up on paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in October rose to 208.5-210.5 paise from the last weekend's close of 202-204 paise.
Far-forward contracts maturing in April 2015 also moved up to 431.5-433.5 paise from 418-420 paise.
The RBI fixed the reference rate for the %at 58.4830 and euro at 79.8058 respectively from 58.8610 and 80.7166 respectively.
The rupee firmed up further against the pound sterling to end at 98.52 from last weekend's close of 98.79 and also shot up against euro to finish at 79.74 from 80.55.
It firmed up against the Japanese currency to close at 57.43 per 100 yen from preceding weekend's close of 57.96.