Stocks: The benchmark BSE Sensex extended gains for the second straight week, surging 219 points to end at 27,324.00, on persistent buying mainly in auto, banking, consumer durable and healthcare stocks on hopes of cut in policy rates by RBI.
Hopes of timely arrival of southwest monsoon by IMD amid short-coverings at the fag-end of the week also boosted the market sentiment.
The Indian Meteorological Department said that conditions are becoming favourable for advancement of southwest monsoon and is likely to hit the Kerala coast on May 30 even as the country stares at the possibly of below normal rains for a second consecutive year.
The Sensex resumed higher at 27,249.42 and hovered in a range of 26,750.01 and 27,544.24 before ending the week at 27,324.00, showing a gain of 218.61 points or 0.81 per cent. It has gained 312.69 points of 1.16 per cent in two weeks.
The 50-share NSE Nifty also firmed up by 70.85 points or 0.86 per cent to close at 8,262.35 after moving in a range of 8,089.80 and 8,332.75 during the week.
Of the 30-share Sensex pack, 16 stocks rose and the rest fell in the week.
On the macro front, the industrial output growth touched a five-month low of 2.1 per cent in March from a revised 4.9 per cent in February on the back of an across-the-board slowdown in production while consumer price index-based retail inflation eased to a four-month low of 4.87 per cent in April from a revised 5.25 per cent in March as prices of food items, vegetables and fruits turned cheaper.
Inflation based on the wholesale price index (WPI) remained in negative zone last month.
WPI inflation stood at negative 2.65 per cent in April.
WPI inflation was (-) 2.33 per cent in March.
Meanwhile, Prime Minister Narendra Modi said that India and China have signed over 20 agreements, covering diverse areas of cooperation.
Major gainers from the Sensex pack were Hero MotoCorp (9.86 pct), SBI (9.76 pct), M&M (5.24 pct), Cipla (4.64 pct), Dr Reddy’s (4.25 pct), HDFC (4.10 pct), Axis Bank (3.50), Gail India (2.86 pct), Bajaj Auto (2.47 pct) and Tata Motors (1.16 pct) while HUL fell by 5.53 per cent, NTPC 4.15 per cent, Vedanta 3.76 per cent and Reliance 1.79 per cent.
Among the sectoral indices, Auto 3.85 per cent followed by bankex 2.57 per cent, consumer durables 2.18 per cent and healthcare 1.92 per cent while realty dropped by 3.03 per cent.
Small-cap and mid-cap indices also rose by 1.96 per cent and 3.20 per cent on fresh buying from retail investors.
The total turnover during the week at the BSE and NSE dropped to Rs 14,906.88 crore and Rs 83,249.96 crore respectively from the last weekend’s level of Rs 15,935.18 crore and Rs 88,668.55 crores.
Forex: The rupee ended higher by 43 paise at 63.51 against the American currency on fresh selling of dollars by banks and exporters on hopes of foreign capital inflows following fag-end recovery in the equity market.
The benchmark Sensex recovered at the fag-end of the week as the Indian Meteorological Department (IDM) said that conditions are becoming favourable for advancement of southwest monsoon and is likely to hit the Kerala coast on May 30.
Sensex continued to rule firm for the second straight week and ended higher by 218.61 points or 0.81 per cent to 27,324.00.
At the Interbank Foreign Exchange (Forex), the domestic unit resumed strong at 63.85 a dollar from previous close of 63.94 and later moved in a range of 63.46 and 64.2675 before concluding the week at 63.51, disclosing a gain of 43 paise of 0.67 per cent.
The rupee had dropped by 52 paise or 0.82 to 63.94 per dollar in the last week.
Banks and exporters preferred to reduce their dollar position in view of lower dollar in the overseas market.
The greenback continued to weaken in the global market, sending a benchmark dollar index to the lowest level since late January as recent sluggish US data prompt investors to rethink the timing of the first Federal Reserve rate hike.
In the forward market, the premium declined on good receivings by exporters.
Forward dollar premium payable in October fell to 212-214 paise from the last weekend’s level of 221.5-223.5 paise and far-forward contract maturing in April also declined to 435-437 paise from 439.5-441.5 paise previously.
The RBI fixed the reference rate for the US dollar at 63.5788 and the euro at 72.3781 from preceding weekend’s level of 64.0493 and 71.7608, respectively.
The rupee moved down further against the pound sterling to end the week at 99.88 from 98.68 previous weekend and also declined further to 72.18 per euro from 71.76.
The domestic currency firmed up against the Japanese currency to end at 52.99 per 100 yen from 53.24 from preceding weekend’s level.
Oils and Oilseeds: Groundnutoil declined, refined palmolein gained while non-edibles firmed up at the Vashi oils and oilseeds wholesale market during the week under review.
Groundnut oil prices declined on stockists selling amid subdued retail demand, coupled with fresh arrivals from producing belts.
Refined palmolein strengthened further due to sustained demand from retailers.
Castorseeds bold and castoroil commercial hardened following firm offtake from shippers and soap industries.
Linseed oil gained during the fag end of week owing to good demand from paint and allied industries.
In the edible oil segment, groundnut oil opened stable at Rs 950 and later drifted to Rs 930 before settling at Rs 940 from last weekend’s level of Rs 950, showing a loss of Rs 10 per 10 kg.
Refined palmolein resumed stable at Rs 495 and later climbed to Rs 505 before settling at Rs 499 from its last weekend level of Rs 495, showing a rise of Rs 4 per 10kg.
Turning to non-edible section, castorseeds bold resumed higher at Rs 3,700 and rose further to 3,775 before ending at Rs 3,800 from its previous weekend level of Rs 3,675, showing a smart rise of Rs 125 per 100 kg.
Castoroil commercial also opened higher at Rs 770 and surged to Rs 785 before settling at Rs 790 from its last weekend level of Rs 765, a rise of 25 per 10kg.
Linseed oil resumed steady at Rs 760 and later moved up to close at Rs 765 from its previous weekend’s level of Rs 760, a gain of Rs 5 per 10kg.
Bullion: Gold prices continued to rule firm for the second consecutive week on persistent demand from stockists on the back of higher global advices.
Silver prices strengthened further for the third straight week and touched 40K-level after 3-1/2 months during the fag end of the week on sustained industrial demand in view of rise in the global market.
Yellow metal continued to trade positive for the second week taking cues from a weak dollar index, which encouraged the demand of the metal. Investors assessed the latest economic data and their influence on the metal’s investment appeal.
Gold prices are just above the psychological level of USD 1,200. Dollar index continues to slide and closed at USD 93.23 for the week to post the fifth weekly fall in a row.
Gold futures logged their highest settlement in more than five weeks on Wednesday after weaker-than-expected US retail sales helped pressure the dollar and raised hopes that the Federal Reserve will push back plans for an interest-rate hike.
In the New York comex market, gold of June delivery rose to USD 1,225.30 an ounce as against the last weekend’s level of 1,188.90. The comex silver July delivery also firmed up to 17.563 an ounce from the last weekend’s level of 16.465.
On the domestic front, standard gold (99.5 purity) resumed lower at Rs 26,860 per 10 grams and moved in a range of Rs 27,435 and Rs 26,910 before finishing at Rs 27,445 against preceding weekend close of Rs 26,930, revealing a rise of Rs 515 or 1.91 per cent.
Pure gold (99.9 purity) also opened lower at Rs 27,010 per ten grams and hovered in a range of Rs 27,585 and Rs 27,060 before ending at Rs 27,595 compared to Rs 27,080 previously, disclosing a rise of Rs 515 or 1.90 per cent.
Silver (.999 fineness) resumed higher at Rs 38,180 per kg and hovered in a range of Rs 38,040 and Rs 39,885 before closing at Rs 40,180 from last Saturday’s level of Rs 38,075 revealing a sharp gain of Rs 2,105, or 5.53 per cent per kg.