Sensex snaps 2-week losing streak, bounces back 723 pts

Stocks: The S&P BSE benchmark Sensex snapped two-week losing streak, recovering by 723 points on fag-end buying by operators ahead of the expiry of futures and options February contract next week.
"Finance Minister's hint at big banking reforms added more legs to the short covering," Anand James, Co Head Technical Research Desk at Geojit BNP Pariba said.
Renewed buying mainly in metal, capital goods, auto, realty, and banking sectors ahead of the Union Budget in the coming days also boosted the market sentiment.
IT and Tech sectors also firmed up in view of fall in rupee value against the dollar as the rupee touched to fresh 29-month low at 68.67 during the week.

Investors were seen building their positions in anticipation of reforms announcement in the upcoming Budget, which will be presented on February 29.
The largest state-owned lender, SBI, advanced by 6.26 per cent after the bank raised Rs 3,000 crore from bonds to fund business growth.

On macro front, the inflation based on Wholesale Price Index (WPI) for January was at (-)0.9 per cent compared with (-)0.73 per cent a month earlier.
Banking stocks were impacted after country's biggest lender State Bank of India said bad loans are expected to surge in the March quarter, which may impact profits.
The Sensex rose by 723.03 points or 3.15 per cent to close at 23,709.15 after hovering in a range of 23,774.48 and 22,920.84 during the week. The Sensex had dropped by 1,884.57 points or 7.58 per cent in previous two weeks.

Foreign portfolio investors (FPIs) sold shares net
Rs 2,397.18 crore during the week as per the SEBI's record, including the provisional figure of February 19.
Back home, the broad market depicted strength, the BSE mid-cap and small cap indices rose by 1.95 per cent and 2.00 per cent, respectively.
Both these indices underperformed the Sensex.
Among the S&P, BSE sector and industry indices, metal rose by 8.52 per cent, followed by capital goods 5.95 per cent, auto 4.91 per cent, realty 4.03 per cent, IT 3.92 per cent, tech 3.26 per cent, oil and gas 3.16 per cent, bankex 2.65 per cent, power 2.45 per cent, healthcare 2.37 per cent and FMCG 1.62 per cent while consumer durables fell by 1.59 per cent.

In the 30-share Sensex pack, 26 stocks rose and the remaining four shares fell during the week.
Among major gainers Adani Ports rose 16.79 per cent. It was the top Sensex gainer last week, followed by Tata Steel which surged by 16.25 per cent, L&T 9.26 per cent, ONGC 9.09 per cent, Hero Motoco 8.78 per cent, Dr Reddy Labs 7.58 per cent, Tata Motors 6.31 per cent, Bajaj Auto 6.29 per cent, SBI 6.26 per cent and Wipro 5.83 per cent, while BHEL fell by 2.53 per cent, it was the top Sensex loser, followed by HDFC 2.11 per cent, Cipla 1.05 per cent and Asian Paints 0.24 per cent.

Forex: The Indian rupee continued to fall against the
American currency for the second consecutive week, tumbling by another 23 paise to close at 68.46 per dollar on persistent dollar demand from banks and importers in view of sustained foreign capital outflows.
Recovery in the domestic equity market failed to restrict the rupee's fall against the dollar, a forex dealer said.
The domestic unit resumed slightly higher at 68.20 as against the last weekend's level of 68.23 per dollar at the Interbank Foreign Exchange (Forex) market and firmed up further to 68.01 per dollar on initial selling of dollars by banks and exporters due to weakness of dollar in the overseas market.

However, it washed out initial gains and dropped to fresh 29-month low at 68.67 per dollar on fag-end dollar demand from banks and importers before ending at 68.46 per dollar, showing a loss of 23 paise or 0.34 per cent.
It has dropped by 82 paise or 1.21 per cent in two weeks.
The domestic currency hovered in a range of 68.01 and 68.67 per dollar during the week.
The rupee had hit its all-time closing low of 68.80 per dollar on August 28, 2013 after plunging to 68.85 mark on the same day in the intra-day trade.
In worldwide trade, the US dollar softened against its major peers after the latest dovish Federal Reserve minutes indicated that the US central bank is concerned about global economic turmoil.

The domestic currency market was closed on Friday,
February 19 on account of "Shiv-Jayanti".
Meanwhile, Foreign Portfolio Investors (FPIs) pumped out net USD 323.07 million in first three days of the week as per SEBI's record.
In the forward market, premium for dollars firmed up on fresh paying pressure from corporates.
The benchmark six-month forward dollar premium payable in July remained steady to 196-198 paise from preceding weekend's level and far-forward contracts maturing in January-2017 firmed up to 416.5-418.5 paise from 410-412 paise.
The RBI fixed the reference rate for the USD at 68.4940 and the euro at 76.3297 as against the last weekend's level of 68.4365 and 77.3606, respectively.

In cross-currency trade, rupee rose against the pound sterling to 98.34 from 99.05 from last weekend level while moved up to 76.08 from 76.97 per euro previously.
Oils and Oilseeds: Groundnut oil, linseed oil ends
steady, while refined palmolein slips. Industrial oil eased further at the truncated Vashi oils and oilseeds wholesale market during the week under review.
Refined palmolein slipped owing to subdued demand from retailers.
Groundnut oil showed alternate bouts of buying and selling and finally ended stable in the absence of any worthwhile demand from stockists and retailers.
Castorseeds bold and castoroil commercial declined further following reduced demand from shippers and soap industries.

Linseed oil maintained stable trend in the absence of any major buying activity from paint and allied industries.
The oils and oilseeds markets was closed on Friday, February 19 on account of "Shiv-Jayanti".
Refined palmolein resumed lower at Rs 525 and fell further to close at Rs 520 as compared to last Saturday's close of Rs 526, revealing a loss of Rs 6 per 10 kg.
Groundnut oil opened lower at Rs 925 and drifted further to Rs 920, before settling at the previous level of Rs 930 per 10 kg.
Turning to non-edible section, castorseeds bold resumed lower and finished at Rs 3,125, from last weekend's level of Rs 3,150, showing a fall of Rs 25 per 100 kg.

Castoroil commercial also started weak to conclude at Rs 655 from its preceding weekend level of Rs 660, showing a loss of Rs 5 per 10 kg.
Bullion: Gold prices staged an impressive rally to hit
its highest level in 2016 after recovering from two straight weeks of losses on renewed buying interest from jewellery traders and stockists influenced by highly bullish overseas sentiment.
Trading largely remained range bound during the holiday-shortened week amid uncertainty over the trajectory of the US monetary policy and near term interest rates outlook.
Gold is witnessing some momentum and demand is picking up gradually after relatively lacklustre performance, as traders are restocking ahead of festivals and upcoming wedding season, a bullion trader said.

Robust investment offtake along with good local buying support also aided the momentum.
On a weekly basis, yellow-metal gained 1.12 per cent to end at Rs 31,570 - its highest levels in more than three years.
Meanwhile, silver continued to reel under immense selling pressure due to heavy unwinding from speculative traders.
The bullion market was closed on Monday on account of Independence Day holiday.
In worldwide trade, the shiny metal rebounded modestly on safe-heaven buying following the release of the minutes and mildly hawkish statements from the Federal Reserve's July meet, which indicated that showed several members were cautious on hiking interest rates soon.

In New York Comex trade, gold for December delivery rose marginally to settle at USD 1,346.20 an ounce from last weekend's closing level of USD 1,343.20, while silver for September contract declined further to USD 19.317 an ounce from USD 19.703 earlier.
On the domestic front, standard gold (99.5 purity) opened firmly higher at Rs 31,450 per 10 gram as against last Friday's closing value of Rs 31,220 on renewed stockists demand.
However, it later fell back to a low of Rs 31,385 before rebounding to end at Rs 31,570 (the level not seen since October 28, 2013) showing a smart rise of Rs 350 per 10 gram, or 1.12 per cent.

Similarly, pure gold (99.9 purity) also commenced higher at Rs 31,600 per 10 gram from previous closing level of Rs 31,370, but soon drifted back to a low of Rs 31,535 on some selling pressure. It bounced back towards the fag-end trade to end higher at Rs 31,720, revealing a solid gain of Rs 350 per 10 gram, or 1.12 per cent.
Silver ready (.999 fineness) resumed on a strong footing at Rs 47,345 per kilo as compared to preceding weekend's close of Rs 47,040, but later succumbed to frantic speculative unwinding and closed at Rs 46,530, registering a steep loss of Rs 510 per kilo, or 1.08 per cent.