Equities marked the New Year-2016 on cheery note, wrapping-up with strong gains for third-week in row as the Bse-Sensex reclaimed the psychological 26K-level and the broader Nifty with key 7,900-level.
The thin year-end trading week was bridled by not so lucrative on market-bearing news as the rally mostly attributed to intense short-covering amid futures and option expiry-day on Thursday and buying in fundamentally strong shares.
The week also witnessed intermittent profit-booking at the higher-levels and prompted by fall-in eight-core sectors, it soon spruced-up on good bouts of value-buying.
Amid near-absence of definite cues from overseas as most of the international markets closed due to year-end holiday’s, the RBI’s informal assurance on curbs on lender banks amid weak corporate balance sheets and bad loans and Finance Minister’s New-year wish-list on ensuring further ease in doing business with rolling out GST and rationalising direct taxes did perked-up investor’s sentiment.
The Sensex resumed higher at 25,858.52 and traded between a high of 26,197.27 and low 25,856.86 before concluding the week at 26,150.80, showing a further gain of 312.19 points, or 1.21 per cent. It had gained by 1,116.47 points, or 4.46 per cent in three weeks.
The NSE 50-share Nifty also surged by 102.15 points, or 1.30 per cent, to end at 7,963.20. It has also gained by 352.75 points, or 4.64 per cent in three weeks.
Buying was mainly led by Realty, Power, Auto, PSU’s, Oil&Gas, HealthCare, Banking and FMCG sectors. While shares of midcap and smallcap companies also performed well.
Foreign portfolio investors (FPIs) continued their buying spree during the week as they purchased net Rs 1,967.01 cr during the week as per the SEBI’s record including the provisional figure of Jan 1, 2016.
Among the 30-share Sensex pack, 21 stocks rose and nine stocks declined during the week.
Major gainers were Tata Motors (5.03 pct), NTPC (3.85 pct), ONGC (3.61 per cent), Coal India (3.57 per cent),Adaniport (3.48 per cent), Dr Reddy’s Lab (3.17 per cent), Sun Pharma (3.06 per cent), Lupin (2.41 per cent), HDFC (2.10 per cent), Gail India (2.08 per cent), ICICI Bank (2.02 pct), HDFC Bank (1.59 pct), ONGC (1.44 per cent), ITC (1.38 per cent) and Bharti Airtel (1.13 per cent).
While, Tata Steel fell by 2.35 pct and BHEL 0.87 per cent.
Among the sector and industry indices, Realty rose by 2.92 pct, Power 2.66 per cent, Auto 2.34 per cent, Oil&Gas 1.54 per cent, Healthcare 1.31 per cent and Bankex 1.26 per cent.
Small-cap and Mid-cap indices also rose by 1.79 per cent and 2.06 per cent respectively in view of good buying from retail investors.
The total turnover during the week on the BSE and NSE rose to Rs 13,281.81 crs and Rs 75,637.11 crs respectively as against the last weekend’s level of Rs 10,972.22 crs and Rs 55,905.22 crores
Forex: Rupee extended gains for the third consecutive week in a row against US dollar by moving up another 7 paise to 66.14 per dollar on persistent selling of dollars by banks and exporters in view of good foreign capital inflows.
The domestic unit resumed higher at 66.10 per dollar as against last Friday’s level of 66.21 at the Interbank Foreign Exchange (Forex) market on initial selling of dollars by banks.
However, it dropped to 66.47 per dollar on month-end dollar demand from importers mainly oil refiners during the Intra-day week.
It moved in a range of 66.0850 and 66.47 per dollar during the week before finishing at 66.14 per dollar, showing a gain of seven paise or 0.11 per cent.
The rupee has gained by 74 paise or 1.11 per cent in three weeks.
Foreign portfolio investors (FPIs) pumped in USD 262.41 million during the four days of the week in the equity market as per the SEBI’s record.
Oil prices rebounded in Asia on the last trading day of 2015 following a sharp decline fuelled by an unexpected rise in US commercial stockpiles.
The commodity headed for another annual loss caused by a stubborn global supply glut and weak demand.
US benchmark West Texas Intermediate (WTI) for elivery in February traded at USD 36.75.
Meanwhile, equity market continued to rule firm for the third week and the benchmark sensex rose further by 312.19 or 1.21 per cent.
In the forward market, the benchmark six-month forward dollar premium payable in June was quoted at 202-204 paise and far-forward contracts maturing in December was quoted at 411-413.
The RBI fixed the reference rate for the USD at 66.1780 and the euro at 71.8627 as agaisnt the last weekend’s level of 66.2020 and 72.4117 respectively.
In cross currency trade, the rupee rose against the pound sterling to close the week at 97.54 from 98.55 last weekend and it gained to 71.81 per Euro from 72.38.
While, the domestic unit fell against the Japanese currency to end at 54.98 per 100 yen from preceding weekend’s level of 54.77.
Oils and Oilseeds: Groundnut oil strengthens, while refined palmolein slips, non-edibles drops further at the Vashi oils and oilseeds wholesale market during the week under review.
Groundnut oil firmed up further due to persistent demand from stockists and retailers amid restricted arrivals from producing belts.
While, refined palmolein slipped modestly owing to absences of retail buying support.
Elsewhere, castorseeds bold and castoroil commercial both dropped further owing to reduced demand from shippers and soap manufacturers, extending its fall for the fifth straight week.
Linseed oil prices eased owing to lower offtake from paint and allied industries.
Turning to edible oils segment, groundnut oil resumed stable at Rs 970, later climbed to Rs 980 before closing at Rs 975 compared to last Saturday’s closing level of Rs 970, showing a rise of 10 per 10kg.
Refined palmolein opened lower at Rs 456 and later settle at Rs 458 as against Rs 460 previously, a fall of Rs 2 per 10kg.
Moving to non-edible section, castorseeds bold commenced higher at Rs 3,775 and moved in a range of Rs 3,750 and
Rs 3,700 before finishing at Rs 3,690 from last weekend level of Rs 3,750, revealing a loss of Rs 60 per 100kg.
Castoroil commercial also started higher at Rs 785 and hovered in a range of Rs 780 and Rs 770 before ending at Rs 768 from Rs 780 previously, showing a fall of Rs 12 per 10kg.
Linseed oil opened stable at 875 and declined to close at Rs 870 as compared to its previous weekend’s level of Rs 875, revealing a loss of Rs 5 per 10kg.