Stocks: A host of positive factors helped both the key indices, Sensex and Nifty, to snap its three week of losing streak during the week under review and rallied by nearly 2.8 per cent on the back of smart rise in banking, metal and capital goods stocks.
After giving up a massive 1,278.92 points or 6.73 per cent in the last three week, the benchmark Sensex bounced back with vengeance on hectic short-coverings amid taking fresh positions ahead of the Union Budget to be announced on February 28 and also expiry of February series on coming Thursday.
The Bombay Stock Exchange 30-share barometer resumed the week higher and remained in positive terrain through out the week and ended up by 482.91 points or 2.72 per cent.
Similarly, the NSE 50-issue Nifty also shot up by 148.95 points or 2.81 per cent to end the week at 5,458.95.
Sentiment was so strong that 12 out of 13 sectoral indices closed with gains. Second-line counters also attracted good buying support at lower level from retail investors.
Realty stocks were only at the receiving end following concerns over recent scams.
General inflation as well as food inflation showed signs of coming down, mainly easing concerns of further hike in interest rates. The general inflation declined to 8.23 per cent in January 2011, from 8.43 per cent in last month and the Finance Minister expressed hope that the overall inflation will come down to 7 per cent by March end.
Food inflation fell for the second straight week to a two-week low of 11.05 per cent for the week ended February 5, against 13.07 per cent in the previous week, providing slight relief to the market participants.
Market regulator SEBI's decision to probe the recent fall in stock markets and Egyptian President Hosni Mubarak's decision to step down also helped to boost investors' sentiment.
Foreign Institutional Investors (FIIs) turned net buyers in the week as they bought shares worth Rs 697.77 crore during the week, including provisional data of February 18.
Overall, 21 out of 30 index based counters closed with gains, while others ended with losses. From banking segment, SBI shot up by 6.60 per cent, HDFC Bank by 5.43 per cent and ICICI Bank by 2.40 per cent.
Steel major Tata Steel flared up by 7.21 per cent on excellent third quarter performance. Jindal Steel also jumped by 9.77 per cent.
"Although we have recovered smartly after a three-week drubbing, doubts still persist about the continuation of the rally. So, be careful and tread cautiously even as the bias remains positive for now," said IIFL Head of Research Amar Ambani.
The market closed up in four out of five sessions as the fag-end selling trimmed some gains on weekend profit booking and the widening probe in the 2G spectrum allocation scam.
Market analysts said the overall sentiment was dampened on the last trading day by CBI raids in the offices and residences of top management of DMK's first-family run Kalaignar TV in connection with the 2G spectrum scam.
According to brokers, the next major trigger for the market is the Union Budget to be announced on February 28, expecting some measures to rein in inflation.
Other major gainers from the Sensex pack were Bajaj Auto (6.34 per cent), BHEL (2.75 per cent), Maruti Suzuki (3.76 per cent), RIL (2.94 per cent), Tata Power (5.67 per cent), Bharti Airtel (3.94 per cent), HDFC (3.67 per cent), HUL (3.85 per cent), Infosys Tech (1.83 per cent), Jaipra Asso (4.28 per cent), L&T (5.35 per cent), Tata Motor (5.00 per cent) and Wipro (2.54 per cent).
However, DLF declined by 5.96 per cent, REL Com by 4.12 per cent, ONGC by 3.35 per cent, M&M by 2.56 per cent, REL Infra by 1.64 per cent and Cipla by 1.60 per cent.
Amongst the sectoral indices, the Bankex flared up by 4.87 per cent, the BSE-Metal by 4.02 per cent, the BSE-CG by 3.93 per cent and the BSE-CD by 3.40 per cent.
Reflecting rally in second-line stocks, the BSE-Smallcap index zoomed by 4.10 per cent and the BSE-Midcap by 2.87 per cent.
Total turnover at BSE was better at Rs 17,390.19 crore from Rs 16,734.94 last week while at NSE it was down at Rs 63,240.49 crore from Rs 67,273.18 crore.
Bullion: The precious metals continue to rule bullish for the third week in row and silver remained a leader with hefty substantial gains during the week under review.
The white metal, silver surpassed its previous record high and came nearer to Rs 48,000-mark at the fag-end trade on heavy speculative and investment buying driven by the global buoyancy. Firm industrial demand also gave support to the market.
Gold witnessed some volatility and traded lacklustre at the domestic market in the absence of major stockists buying though it got support from mainly local buying interest and jewellery makers due to marriage seasonal offtake.
The bullion market was closed today on account of 'Chhatrapati Shivaji Maharaj Jayanti' holiday.
In global trade, the precious metals generally wavered throughout the week, but fall-out of Egypt crisis spreading to other Middle East countries which fuelled safe-haven buying resulting gold climbing a five week high and silver touching a fresh 31-year high with strong industrial and investment buying spree.
In New York, gold for April delivery hardened to close at USD 1,388.60 from last weekend's level of USD 1,360.40.
Silver for March delivery also ended strong at USD 32.30, as against USD 29.99 previously.
Turning to domestic market, silver ready (.999 fineness) resumed lower at Rs 45,950, but later zoomed to end at a new peak of Rs 47,980 from preceding weekend's level of Rs 46,000, showing sharp gain of Rs 1,980 or 4.30 per cent per kilo.
Standard gold (99.5 purity) opened lower at Rs 20,180 and declined further to a low of Rs 20,155 before recovering to finish at Rs 20,430 from previous weekend's level of Rs 20,215, showing a rise of Rs 215 or 1.06 per cent per ten grams.
Pure gold (99.9 purity) resumed weak at Rs 20,285 and moved down further to Rs 20,260, but later shot up to close at Rs 20,535 from last weekend's level of Rs 20,315, disclosing a gain of Rs 220 or 1.08 per cent per ten grams.
Oils and oilseeds: Edible oil and non-edible oil prices declined sharply at the oils and oilseeds market during the week under review.
Refined palmolein dropped due to subdued demand from stockists as well as lack of buying support from retailer amidst lower Malaysian advices.
Groundnut oil moved down in the absence of demand from retailers coupled with increased arrivals from producing belts.
Castorseeds bold and castoroil commercial reacted downwards on the back of heavy offloading from stockists and traders. But fag-end buying from industrial users reduced the losses.
Linseed oil fell sharply on reduced demand from paint industry.
Castorseeds futures markets witnessed heavy unwinding from speculators after its recent rally on the back of declining export orders.
In edible oil segment, refined palmolein resumed lower at Rs 605 and declined further to close at Rs 587 from preceding weekend's level of Rs 608, showing a sharp fall of Rs 21 per 10kgs.
Groundnut oil steady at Rs 765, but later slipped to end at Rs 755 from last weekend's level of Rs 765, disclosing a loss of Rs 10 per 10kgs.
Turning to non-edible section, castorseeds bold opened steady at Rs 6,000, but later plunged to a low of Rs 5,450 before closing at Rs 5,750 from previous weekend's level of Rs 6,000, showing a steep fall of Rs 250 per 100kgs.
Castoroil commercial resumed steady at Rs 1,230, afterwards it dropped to a low of Rs 1,120 before finishing at Rs 1,180 from last weekend's level of Rs 1,230, showing a loss of Rs 50 per 10kgs.
Linseed oil resumed steady at Rs 710, but later dipped to close at Rs 685 over its last weekend's level of Rs 710, showing a fall of Rs 25 per 10kgs.
Moving to the futures section, castorseeds for March delivery resumed lower at Rs 5,540 and tumbled to a low of Rs 5,100 before concluding at Rs 5,195 from last Saturday's closing level of Rs 5,570, registering a hefty fall of Rs 375 per tonne.