Markets extend gains for 3rd week in row, Sensex reclaims 26K

Stocks : 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.

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.
Forex: The rupee bounced back against the American
currency, recovering by 38 paise to end the week at 3-month high at 66.26 per dollar on fresh selling of dollars by banks and exporters in view of persistent foreign capital inflows into equity market coupled with lower dollar in the overseas market.
However, month-end dollar demand from importers, mainly oil refiners, restricted the rupee's gain against the dollar.
Heavy capital inflows from foreign Portfolio Investors (FPI) and Foreign Institutional Investors (FII) mainly boosted the rupee value against the dollar, a forex dealer said.

The rupee resumed lower at 66.90 as against the last weekend's level of 66.64 at the Interbank Foreign Exchange (Forex) market on initial month-end dollar demand from importers mainly oil refiners.
However, the rupee recovered afterwards to 66.17 per dollar on fag-end selling of dollars by banks and exporters on the back of foreign capital inflows before concluding at 3-month closing high at 66.26 per dollar, showing a gain of 38 paise or 0.57 per cent.
The rupee had last ended at 66.14 per dollar on January 1, 2016.
The rupee had ended lower by 14 paise or 0.21 per cent in the previous week.

The rupee hovered in a range of 66.17 per dollar and 66.90 per dollar during the week.
Oil prices fell in Asia as ongoing worries about the
global supply glut overshadowed the benefits of a weakening dollar.
Official data released Wednesday showing US commercial crude inventories climbing to a fresh record high last week further underscored concerns about a market brimming with supplies and not enough demand.
In forward market, premium for dollar dropped further on persistent receiving from exporters.
The benchmark six-month forward dollar premium payable in August fell to 175-177 paise from the last weekend's level of 202-204 paise, September contract also fell to 210-212 paise from 237-239 paise and far-forward contracts maturing in February-2017 also dropped to 375-377 paise from 406-408 paise previously.

The RBI fixed the reference rate for the dollar at 66.3329 and the euro at 75.0955 respectively as against the last weekend's level of 66.8640 and the euro at 74.9077.
The rupee fell against the pound to finish at 95.50 from the last weekend's level of 94.55 and also moved down against the euro to settle at 75.40 from 74.60.
The domestic unit firmed up further against the Japanese currency to end at 59.02 per 100 yens from 59.17 last weekend's level.
Bullion: Precious gold maintained the bearish trend,
marking its second straight weekly loss at the domestic bullion market due to reduced offtake from jewellery stockists and traders amid lower global cues.

Lacklustre Investors and local buying interest at the existing levels due to uncertainty surrounding the US Federal Reserve's rate hike over hawkish tone by some FOMC officials impacted the price movements.
Being squeezed by falling prices, many speculators have moved to the sidelines, at least for now, a bullion trader commented.
Elsewhere, silver also remained under intense selling pressure to end below Rs 37,000-mark from speculators and stockists coupled with poor industrial demand.
In New York Comex trade, gold for June delivery
recovered to settle lower at USD 1,223.50 an ounce against last weekend's close of USD 1,221.60, while May silver contract declined to close at USD 15.046 an ounce from USD 15.199.

On the domestic front, standard gold (99.5 purity) resumed substantially weak at Rs 28,085 and surged to Rs 28,400 before closing at Rs 28,345 per 10 grams against last Friday's level of Rs 28,360, showing a loss of Rs 15 per 10 grams, or 0.05 per cent.
Similarly, pure gold (99.9 purity) also opened lower at Rs 28,235 and climbed to Rs. 28,550 before closing Rs. 28,495 per 10 grams from preceding weekend level of Rs28,510, revealing a fall of Rs 15 per 10 grams, or 0.05 per cent.
In New York Comex trade, gold for August delivery rose to settle at USD 1,339 an ounce as compared to last weekend's close of USD 1,322.40 and July silver contract shot-up to USD 19.588 an ounce from USD 17.789 earlier.

On the domestic front, standard gold (99.5 purity) opened on a firm footing at Rs 30,885 per 10 gram as against last Friday's closing value of Rs 30,755 and swung between Rs 30,895 and Rs 30,545 before settling at Rs 30,745, showing a modest loss of Rs 10 per 10 gram.
Similarly, pure gold (99.9 purity) also resumed on a positive note at Rs 31,035 per 10 gram from Rs 30,905 and traded in a range of Rs 31,045 and Rs 30,695 before ending at Rs 30,895, revealing a small loss of Rs 10 per 10 gram.
In contrast, silver ready (.999 fineness) commenced sharply lower at Rs 42,640 per kilo as compared to preceding weekend's close of Rs 42,930 and drifted further to Rs 42,260 on the back of some selling pressure at higher levels.

However, breaking a two-day slide, the industrial metal staged a resounding comeback towards the fag-end session to hit a fresh two-year high of Rs 45,160 before ending at Rs 45,080, registering a solid spike of Rs 2,150 per kilo, or 5.00 per cent.