After four weeks of losses, domestic equities staged a mild recovery from six-moth lows, with both key market indices Sensex and Nifty reclaiming the psychological 26,000 and 8,000 levels, respectively.
Foreign investors constant offloading Indian stocks over potential US rate hike next month and cash-crunch shock in most of the sectors due to government's demonetization drive played the part in market momentum with key index tumbling to six-month low of 25,717.93.
While, market witnessed short-covering ahead of November derivative expiry amid higher global cues acting bulwark against the persistent losses enduring the inherent domestic market strength during the week.
Stocks once again lost viability on rupee volatility as it plunged to a fresh life-time record low of 68.86 against dollar during November expiry day -- pulling the market once again to end below the key 26,000-level.
However, the weekend saw the the first day of December series starting on a positive note with recovering rupee after RBI intervened heavily to arrest the currency's fall, while the US Thanksgiving holiday break stopped the dollar relentless surge as well as helped to pause sucking of FII capital from emerging markets.
Domestic traders lapped up beaten-down but fundamentally strong stocks amid firm global cues supported by positive Fitch Ratings on India's GDP growth.
Market sentiment revived to some extent after the rating agency forecast India's economic growth to accelerate next fiscal on the back of reforms and monetary policy easing.
Besides, the fall in rupee value also lifted the IT and pharma stocks.
During the week, the Sensex gained 166.10 points, or 0.64 per cent, to settle at 26,316.34. It hovered in the range of 26,343.95 and 25,717.93 during the week.
The Sensex has lost 1,926.94 points, or 6.86 per cent, in last four weeks.
The Nifty 50 index during the week rose 40.20 points, or 0.50 per cent, to end at 8,114.30 after shuttling between 8,122.25 and 7,916.40.
The broader market index fell by 618.95 points, or 7.12 per cent, in last four weeks.
The buying was led by IT, teck, metal, consumer durable, healthcare, FMCG, realty sectors, followed by shares of smallcap and midcap companies shares.
While selling was witnessed in bankex, auto, PSUs, power, capital goods and oil&gas counters.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 5,421.89 crore during the week, as per Sebi's record including the provisional figure of November 25. In the broader market, The BSE Mid-Cap index rose 110.59 points, or 0.92 per cent, to settle at 12,183.02. The BSE Small-Cap index rose 158.76 points or 1.34 per cent to settle at 12,027.70. Both these indices outperformed the Sensex. Among sectoral and industry indices, IT rose 6.61 per cent, followed by technology (5.16 per cent), metal (4.37 per cent), consumer durables (2.91 per cent), healthcare (2.76 per cent), FMCG (1.17 per cent) and realty (1.11 per cent). However, bankex fell by 2.50 per cent, auto 2.19 per cent, power 0.81 per cent, capital goods 0.54 per cent and oil and gas 0.02 per cent. Among the 30-share Sensex, 18 rose, 12 shares fell during the week. TCS surged 8.37 per cent. The company said it will implement a unified global process blueprint for ASML, aiming to simplify business processes, improve operational efficiency and elevate stakeholder experience. ASML is one of the world's leading manufacturers of chip-making equipment. Wipro jumped 6.36 per cent. The company announced that it completed the acquisition of Appirio on November 23, 2016.
As mentioned in the media presentation submitted as part of results for Q2 September 2016, impact of the Appirio acquisition is expected to reflect in the financials of Wipro for Q3 December 2016, the company said.
It was followed by Lupin 6.29 per cent, Infosys 6.25 per cent, Tata Steel 5.87 per cent, Asian Paints 4.18 per cent, Hero Motoco 3.77 per cent, HUL 3.63 per cent, Sun Pharma 3.47 per cent and Cipla 2.47 per cent.
Bank stocks declined with the S&P BSE Bankex index sliding 2.50 per cent. State Bank of India was down 5.35 per cent.
Mahindra & Mahindra (M&M) was down by 4.73 per cent. The company announced that it inaugurated a spare parts warehouse in Mahindra World City (MWC), Jaipur. The warehouse will cater the requirement of customers in north and north-western region of the country for both automotive and tractor spare parts.
It was followed by Tata Motors 3.77 per cent, Gail 2.34 per cent, Power Grid 2.27 per cent, HDFC Bank 1.85 per cent, ICICI Bank 1.78 per cent and Maruti 1.75 per cent.
The total turnover during the week on BSE fell to Rs 12,443.90 crore from last weekend's level of Rs 15,905.20 crore while NSE rose to Rs 99,009.43 crore from Rs 94,503.03 crore.
Bullion: Gold continued its losing streak for the third straight week, as the yellow-metal closed below the psychologically important Rs 29,000-mark at the domestic bullion market, largely in-tandem with a weakening trend overseas amid poor demand from stockists and jewellers. Besides weak global trend, fall in demand from jewellers and cash shortage following Prime Minister Narendra Modi's shock withdrawal of high-value notes to fight "black money" mainly kept gold prices lower, a dealer said. The yellow-metal lost a whopping 5.98 per cent in its three-week downslide. Elsewhere, silver too fell for the second straight week owing to lacklustre industrial demand. The white-metal lost a whopping 20.02 per cent in its two-week downslide. Globally, gold prices slipped to hit a fresh 9-month low intra-day, leading to a roughly 2 per cent drop in the week, after the dollar index notched its highest reading in over a decade. As widely expected, if US Federal Reserve goes for interest rate hike next month, investors will vouch for dollar rather than non-yielding gold. Besides, the rising dollar will cut demand for precious metals priced in the greenback. Gold futures for December delivery fell USD 10.30, or 0.9 per cent, to USD 1,179 an ounce on Friday, the lowest finish for the lead contract since the first week of February. Meanwhile, December silver nosed higher by 7 cents, or 0.5 per cent, at USD 16.465 an ounce on Friday. Silver ended the week 0.4 per cent lower after hitting its lowest mark since June, earlier this week.
In the New York Comex trade, gold for delivery in December tanked to USD 1,179 an ounce as compared to last Friday's close of USD 1,208.70 and silver for December also fell to USD 16.465 an ounce from USD 16.624. On the domestic front, standard gold (99.5 purity) resumed higher at Rs 29,300 per 10 grams from last Friday's closing level of Rs 29,160, it hovered between Rs 29,430 and Rs 28,690 before concluding at Rs 28,855, revealing a loss of Rs 305, or 1.05 per cent. Pure gold (99.9 purity) also commenced higher at Rs 29,450 per 10 grams as compared to preceding weekend's level of Rs 29,310, it traded between Rs 29,580 and Rs 28,840 before ending at Rs 29,005, showing a loss of Rs 305, or 1.04 per cent. Silver ready (.999 fineness) opened higher at Rs 41,970 per kilogram from last Friday's closing level of Rs 41,765, it moved between Rs 42,140 and Rs 41,065 before closing at Rs 41,265, registering a fall of Rs 500, or 11.97 per cent.
Oils and Oilseeds: Groundnut oil slipped, refined palmolein recovered, castorseeds bold and castor oil commercial surged while, linseed oil maintained a steady trend at the Vashi oils and oilseeds wholesale market during the week under review. Groundnut oil slipped following reduced demand from stockists and retailers amid ample supplies from producing belts. Refined palmolein recovered smartly owing to renewed offtake from retailers. In the non-edible category, castorseeds bold and castor oil commercial strengthened due to sustained demand from shipping and soap industries. Linseed oil remained steady due to any worthwhile demand from paint and allied industries. In the edible oil segment, groundnut oil opened steady at Rs 1,040 and moved in a range of Rs 1,050 and Rs 1,030 before settling at Rs 1,000 from its previous weekend's level of Rs 1,040, showing a fall of Rs 40 per 10 kg. Refined palmolein resumed higher at Rs 575 and later rose further to Rs 588 before closing at Rs 585 from its last weekend's level of Rs 572 per 10 kg, showing a gain of Rs 13 per 10 kg. Among the non-edibles, castorseeds bold opened stable at Rs 3,875, later rose to conclude at Rs 3,950 as against last Saturday's level of Rs 3,875 per 100 kg, showing a rise of Rs 75 per 100 kg. Castor oil commercial also resumed steady at Rs 800, later surged to finish at Rs 820 from last weekend's level of Rs 805, registering a gain of Rs 15 per 10 kg. Linseed oil opened and closed at previous weekend's level of Rs 1,050 per 10 kg.
Forex: The battered Indian rupee crumbled to hit a fresh life-time low on heightened fears over capital outflows and concerns on recent demonetisation drive even as a possible Fed rate hike in the near term kept sentiment shaky. However, a suspected RBI intervention of massive scale stemmed the slide of the rupee, which recovered partially to end the highly volatile week at 68.46. Suffering from a double whammy of an imminent Federal Reserve rate hike and the possible impact of currency demonetisation on country's economic growth, the home currency touched a record low of 68.8650 on Thursday before recovering on intervention. Robust month-end dollar demand from oil companies along with aggressive hedging strategy adopted by importers in the wake of currency volatility predominately took a tool on the local unit, a forex dealer said. The forex market sentiment remained fragile due to consistent unwinding by foreign investors and also redemption pressure on foreign currency non-resident (FCNR) deposits. The outflows on account of selling by foreign investor and hedge funds remained unabated for the 4th straight week and have offloaded worth USD 737.49 million in equities and debt markets. A stronger greenback overseas too weighed on trade. Expectations of rise in US inflation and interest rates have driven the greenback to a more than 6 per cent gain in the past two months, its strongest one over a similar period since early 2015. A recent series of solid US economic data has also spurred views that the Federal Reserve may raise interest rates more next year after a widely expected hike in December. At the Interbank Foreign Exchange (forex) market, the domestic unit opened modestly higher at 68.10 from last weekend's closing value of 68.13 and gained further ground to touch a high of 68.07. Reversing the earlier trend, rupee succumbed to a swift and brutal fall to hit a historic low of 68.8650 before ending at 68.46, revealing a loss of 33 paise, or 0.48 per cent. It has depreciated by a whopping 176 paise, or 2.64 per cent in last three weeks of downfall. The dollar index ended a tad higher at 101.48 - its best level since March 2003. It had reached as high as 102.05 on Thursday and gained a whopping 3.72 per cent since the victory of President-Elect Donald Trump.