Market snaps two week gains, falls 232 points

Stocks: The market snapped its two week gaining streak, falling 231.52 points to 25,606.62 in a volatile trading sessions swayed by global and domestic factors.
The monthly derivative expiry week also riddled by domestic earning results, US Fed and Bank of Japan meetings impacting the sentiments.
Caution also set due to Parliaments's Budget session got underway during the week with concerns pertaining over the key Goods and Service Tax (GST) bill for the passage in parliament.
Although the key indices retook the crucial 26K-level on recovery in global stocks amid crude rebound and solid domestic Q4 numbers in select blue-chips for two sessions, it was squeezed by Bank of Japan's decision to cease from fresh stimulus by keeping interest rates unchanged and somewhat hawkish US Fed indicating higher chances of rate hike in June depressing global stocks pulling-down the domestic indices.

Despite good FII inflows in to domestic equities the fag-end trade saw mute earning results in key blue-chip playing spoil-sport on trading momentum.
The Sensex resumed higher at 25,891.03 and surged to 6-month high of 26,100.54 and low of 25,424.03 before closing the week at 25,606.62, showing a loss of 231.52 points or 0.90 per cent.

It has gained by 1,164.30 points of 4.72 per cent in previous two weeks.
The NSE 50-share Nifty also fell by 49.50 points or 0.63 per cent to close the week at 7,849.80 after touching a high of 7,992.00 during the week.
The Nifty also had gained 344.10 points or 4.55 per cent in previous two weeks.

Selling was seen in most of the spectrum led by power, PSUs, consumer durables, auto, capital goods, oil&gas, FMCG, metal and IT sectors followed by smallcap shares.
Meanwhile, foreign portfolio investors (FPIs) and
foreign institutional investors (FIIs) bought shares worth whopping Rs 1,281.43 crore during the week as per Sebi's record including the provisional figure of April 29.
In the broader market, the BSE Mid-Cap index rose 24.28 points or 0.22 per cent to settle at 11,042.92, outperforming the Sensex. The BSE Small-Cap index shed 58.25 points or 0.53 per cent to settle at 11,020.59. The fall in this index was lower than Sensex's decline in percentage terms.

Among the S&P, BSE sector and industry indices, power fell by 2.21 per cent, followed by consumer durables 1.25 per cent, auto 1.24 per cent, capital goods 1.21 per cent, Oil & Gas 1.08 per cent, FMCG 0.90 per cent, metal 0.77 per cent, IT 0.14 per cent and healthcare 0.04 per cent.
However, realty rose by 3.75 per cent followed by Bankex 0.42 per cent and tech 0.31 per cent.
Among the 30-share Sensex pack, 22 stocks declined and the rest of them rose during the week.
Major loser was, ICICI Bank dropped 6.09 per cent to Rs 236.60 and was the top loser from the Sensex followed by SBI 5.48 per cent, Reliance 5.41 per cent, HDFC 3.56 per cent, Hero Motoco 3.52 per cent, NTPC 3.04 per cent, HUL 2.00 per cent, Tata Motors 1.94 per cent, Bhel 1.80 per cent and Gail 1.75 per cent.

While TCS rose by 4.67 per cent followed by HDFC Bank 3.77 per cent, Adani Ports 3.36 per cent, Lupin 3.18 per cent, Bharti Airtel 3.02 per cent, Cipla 1.03 per cent and ONGC 0.81 per cent.
Forex: The rupee recovered moderately by six paise to
two-week high at 67.02 against the American currency on fresh selling of dollars by banks and exporters in view of strong foreign capital inflows coupled with recovery in equity market.
A weak dollar in overseas market also boosted the rupee sentiment, a forex dealer said.
Foreign portfolio investors (FPIs) and institutional investors (FIIs) pumped in USD 596.64 millions during the first four days of the week as per the SEBI's record.

The rupee resumed lower at 67.19 per dollar as against the last weekend's level of 67.08 per dollar at the Interbank Foreign Exchange (Forex) market and dropped further to 67.43 per dollar on month-end dollar demand from importers, mainly oil refiners.
However, it recovered afterwards to 66.9550 per dollar before closing at two-week high of 67.02 per dollar, showing a gain of six paise or 0.09 per cent on good foreign capital inflows.
The rupee had ended at 66.91 per dollar on July 14, 2016.
The domestic currency hovered in a range of 66.9550 and 67.4300 per dollar during the week.

At the overseas market, the dollar dropped on Friday after
data showed that the US economy grew at a slower pace than expected in the second quarter, while the Japanese yen soared after the Bank of Japan's stimulus plans underwhelmed investors.
The dollar has fallen since the Federal Reserve's statement from its policy meeting last Wednesday disappointed some investors who had thought the US central bank might signal that a rate increase was possible in September.
The US dollar index, which tracks the greenback against a basket of six major rivals, dropped 1.22 per cent to 96.566, the lowest level since July 5.

In the forward market, premium for dollars declined further due to sustained receipts from exporters.
The benchmark six-month forward dollar premium payable in December fell to 165.5-167 paise from preceding weekend's level of 174-176 paise and far-forward contracts maturing in June also eased to 364.5-366 paise as compared to 371-373 paise, earlier.
The RBI fixed the reference rate for the USD at Rs 67.0340 and the euro at Rs 74.2737 from last Friday's level of Rs 67.1355 and Rs 74.0303, respectively.
In cross-currency trade, the rupee dropped against the pound and settled at 88.31 from 87.90 and also fell against the euro to finish at 74.47 from 73.91 previously.

Bullion: Gold prices reversed its one week down-trend
following sharp investment offtake and increase in buying interest from stockists and jewellery buyers to hit the psychological Rs 31,000 level attributed mainly due to higher global cues.
Despite a subdued start, the yellow metal staged a strong comeback during the week trade.
Elsewhere, silver also rebounded sharply to close above the significant Rs 48,000 mark due, its highest in more than two-years, to heavy speculative buying coupled with higher industrial demand. (The level has not been seen since February 21, 2014).
In worldwide trade, weakness in equities helped the gold to boost its safe-haven appeal.

Gold futures settled on Friday with a monthly gain of nearly 3 per cent, after a report on the US economic growth came in weaker than expected, pushing the dollar lower and lifting prices for the precious metal higher to a three-week high.
Gold saw further support as many investors believe that the Federal Reserve lacks the confidence to lift rates too abruptly without further signs of strength in the US economy.
At its policy meeting this week, the Federal Reserve stopped short of indicating that a further increase in the US interest rates is on the cards for later this year.

Uncertainty over the path of interest rates has held gold in check since it rallied to more than two-year highs in the wake of Britain's shock vote last month to leave the European Union.
In New York Comex trade, gold for December delivery rose
to finish at USD 1,357.50 an ounce as compared to last weekend's close of USD 1,323.40 and September silver contract also climbed to settle at USD 20.347 an ounce from USD 19.689.
On the domestic front, standard gold (99.5 purity) commenced lower at Rs 30,750 per 10 gram as compared to last Friday's close of Rs 30,835 and moved in a range of Rs 30,720 and Rs 31,100, before concluding at Rs 30,960, showing a rise of Rs 125 per 10 gram, or 0.40 per cent.

Similarly, pure gold (99.9 purity) also resumed lower at Rs 30,900 per 10 gram against last close of Rs 30,985 and hovered in a range of Rs 30,870 and Rs 31,250, before finishing at Rs 31,110, revealing a rise of Rs 125 per 10 gram, or 0.40 per cent.
Silver ready (.999 fineness) too opened negative at Rs 46,290 per kilo from its last weekend's level of Rs 46,820 and moved in a range of Rs 46,300 and Rs 48,265, before ending at Rs 47,470, registering a rise of Rs 650 per kilo, or 1.38 per cent.