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Weekly market review: Sensex, Nifty reach new peaks

Extending gains for fifth straight week, stock specific actions sparked by a smart rally in banking and capital goods sector lifted both Sensex and Nifty by over 1 % to conclude the week at new record highs.

business Updated: Nov 23, 2014 01:14 IST

Extending gains for fifth straightweek, stock specific actions sparked by a smart rally in banking and capital goods sector lifted both benchmark indices, Sensex and Nifty, by over one per cent to conclude the week at new record highs.

The week started on a record-breaking mode on the back of positive cues such as the declining trade deficit data for October.

Recent macroeconomic data has reaffirmed investors' view that the Indian economy is on track for a smart recovery at a time when Japan has slipped into recession, say traders.

Continued fall in the global crude oil prices augurs well for price rise in India, which imports over 70 % of its oil requirements.

It, however, immediately fell back in the next two days as lack of cues from domestic and global front kept the participants on the sidelines and triggered profit-taking in selective pivots.

Fall in the rupee value to 62-level against the US dollar also weighed on the market sentiment.

Later, it recovered in the last two sessions of the week on hopes of big-bang reforms in upcoming Winter Session of Parliament.

Positive global cues after US shares provided another record-breaking lead on the back of encouraging economic data also boosted the market outlook.

The benchmark S&P BSE Sensex resumed lower at 28,018.68 but dipped to a low of 27,915.23 before recovering to log its lifetime high of 28,360.66.

It also registered a new closing peak of 28,334.63, showing a gain of 287.97 points, or 1.03 %.

The Sensex has gained 2,226.10 points, or 8.53 %, in straight five weeks.

The CNX 50-share Nifty of the NSE also spurted by 87.45 points, or 1.04 %, to finish at record level of 8,477.35, and it also hit lifetime intra-day high of 8,489.80 during the week.

The fag end trade saw shares from the banking sector taking centre-stage on mergers and acquisitions news of Kotak Mahindra acquiring ING Vysya Bank.

Sentiments were also lifted by positive global cues following comments from European Central Bank (ECB) President Mario Draghi over aggressive quantitative easing measures along with reassuring US economic data.

Profit-booking was witnessed in realty, metal and consumer durable sectors.

Foreign portfolio investors (FPIs) continued their buying spree during the week, investing Rs 710.50 crore as per Sebi's record, including the provisional data of November 21.

Out of the 30-share Sensex pack, 19 stocks ended higher while 11 others closed lower.

Major gainers from the Sensex pack were SBI (9.40 %), Bharti Airtel (3.22 %), Cipla (3 %), RIL (2.92 %), Dr Reddy's Lab (2.74 %), Larsen (2.74 %), Coal India (2.74 %), BHEL (2.66 %), Hero MotoCorp (2.30 %), ICICI Bank (2.29 %), Hindalco (1.75 %), Wipro (1.65 %), ITC (1.56 %), Tata Motors (1.27 %) and Bajaj Auto (1.10 %).

However, Sun Pharma fell by 4.98 %, followed by Tata Steel (3.42 %), Gail India (2.73 %) and ONGC (2.48 %).

Among the S&P BSE sectoral indices, Bankex rose by 2.81 %, followed by CG (2.20 %) and Auto (1.42 %) while Realty fell by 2.65 %, Metal (2.41 %) and CD (1.75 %).

The total turnover at BSE and NSE stood at Rs 17,604.23 crore and Rs 86,603.23 crore, respectively as against the previous weekend's level of Rs 17,787.23 crore and Rs 86,255.44 crore.

Oils and Oilseeds: Groundnut oil slipped, refined palmolein recovered, while non-edible oils gained during the week under review.

Groundnut oil slipped on subdued demand from stockists and retailers amidst ample arrivals from producing belts.

However, refined palmolein recovered modestly owing to good retail demand.

Linseed oil maintained its steady trend following lack of any large-scale buying from paint and allied industries.

Castorseeds bold and castor oil commercial gained further due to sustained demand shippers and soap industries.

In the edible oils segment, groundnut oil resumed lower at Rs 840 and drifted further to close at Rs 830 from its last weekend's level of Rs 850, showing a loss of Rs 20 per 10 kg.

Refined palmolein opened lower at Rs 495, and later rebounded to finish at Rs 500 from its previous level of Rs 497 per 10 kg, showing a marginally rise of Rs 3 per 10 kg.

Turning to non-edible section, castorseeds bold resumed higher at Rs 4,165 and later rose to Rs 4,200 before ending at Rs 4,175 from its preceding weekend's level of Rs 4,150, showing a mere gain of Rs 25 per 100 kg.

Castor oil commercial also opened higher at Rs 863 and later climbed to Rs 870 before conclude at Rs 865 from its last weekend's level of Rs 860 per 10 kg, showing a modest rise of Rs 5 per 10 kg.

Linseed oil continued to remain stable at its previous weekend's closing level of Rs 760 per 10 kg.

Forex: Fag end recovery on likely intervention by RBI through state-owned banks amid record-breaking local equities helped the rupee to recover from its 9-month intra-day low of 62.25 logged on Thursday, still closing low by four paise at 61.76 against the Greenback.

Capital inflows also aided the rupee recovery while firm dollar overseas weighed on the market.

In initial lacklustre trade, the rupee resumed higher but immediately fell back and remained in negative zone for three days on dollar demand from importers, rise in dollar overseas and weakness in domestic stocks.

Fall in the crude oil prices prompted oil companies to speed up their Greenback purchases which also hurt the rupee sentiments.

The dollar hit a new seven-year high against the yen and held near an over one-year peak versus sterling, impacting negatively on the rupee.

At the Interbank Foreign Exchange (Forex) market, the local currency resumed strong at 61.63 a dollar, which also happens to be the week's high, from last weekend's close of 61.72.

Later, it met with strong resistance and dropped to a nine-month low of 62.25 - a level not seen since February 20, 2014 when it had recorded an intra-trade low of 62.45.

However, possible dollar selling by the Reserve Bank through state-run banks improved the rupee sentiment and it recovered to close the week at 61.76, still showing a fall of four paise, or 0.06 %.

In straight four weeks, it has tumbled by 93 paise, or 1.51 %.

Smart recovery in local equities on the last two days also boosted the rupee sentiment.

Forex experts said investors added favourable bets ahead of US Federal Reserve minutes that could highlight policy difference with its peers as hopes are high that Fed minutes will sound relatively more hawkish.

The benchmark S&P BSE Sensex closed the week up by 287.97 points, or 1.03 %, while FPIs/FIIs bought shares worth USD 95.70 million on first four days of the week, as per Sebi data.

Veracity Group CEO Pramit Brahmbhatt said, "The week rupee traded sideways but managed to close near its last weekend's closing level. The rupee is expected to appreciate in coming days, tracking gains in local equities though the strong dollar has dented its upside movement, forcing it to trade over seven month low. Also, last week we saw some profit-booking from FIIs which further hammered the rupee." "But on the last trading day, the rupee tried to recover due to RBI intervention through state-owned banks and closed at 61.76, with the help of strong local equities which touched new all-time high. The trading range for the Spot USD/INR pair is expected to be within 61.40-62.20," he added.

In the forward market, premium dollar reacted downwards on fresh receiving by exporters.

The benchmark six-month forward dollar premium payable in April dipped to 205.5-207.5 from last weekend's level of 215-217 paise and far-forward contracts maturing in October 2015 also tumbled to 428.5-430.5 paise from 443-445 paise.

The RBI fixed the reference rate for the US dollar at 61.8505 and the euro at 77.6224 from preceding weekend's level of 61.6475 and 76.6957, respectively.

The rupee remained firm against the pound sterling to end at 96.73 from 96.65 last weekend and also improved further to 52.37 per 100 Japanese yen from 53.01.

It, however, declined further to 76.72 per euro from 76.82 last weekend.

First Published: Nov 22, 2014 23:15 IST