BSE Sensex snapped its two week gaining spree, tumbling 207.28 points to close 26,635.75, while the broader Nifty came off its crucial 8,200-level.
The week saw the market momentum tapering off due to profit-booking as optimism favouring domestic macro fundamentals and good monsoon forecast being sidelined because of prospective uncertainty over global events pressurising the sentiment.
Notwithstanding, the market succeeded to mark its seven-month highs of 27000-level following the RBI's decision the interest rates unchanged and its Governor Raghuram Rajan signalling an accommodative stance if inflationary data amid good monsoons would be supportive.
However, the final trading session saw the key indices turning lackluster on caution ahead of key domestic IIP data to be released after market hours and pivotal global events, the forthcoming US Fed meet next week and June 23 as well as all important Brexit outcome concerns in which Britain would vote whether to stay as European Union member or make an exit.
The BSE Sensex opened higher by 26,897.84 and hovered between a highs of 27,105.41 and a low 26,620.50 before ending the week at 26,635.75, showing a loss of 207.28 points or 0.77 per cent.
The NSE Nifty-50 also closed lower by 50.75 points or 0.62 per cent to close below the psychological 8,200-level to end the week at 8,170.05.
The week witnessed bouts of hectic profit-booking led by IT, tech, healthcare, auto and FMCG.
While, buying was seen in power, metals, capital goods, realty, PSUs, banks, oil and gas and consumer durables.
Secondline shares of smallcap witnessed good buying interest, while midcap shares ended with losses.
Meanwhile, foreign portfolio investors (FPIs) and foreign
institutional investors (FIIs) bought shares worth net Rs 1,613.56 crore during the week as per Sebi's record, including the provisional figure of June 10.
In the broader market, the BSE midcap index fell 18.27 points or 0.16 per cent to settle at 11,376.37. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE smallcap index rose 214.01 points or 1.92 per cent to settle at 11,362.72, outperforming the Sensex.
Among the S&P BSE sector and industry indices, IT fell by 3.48 per cent, followed by teck (3.21 per cent), healthcare (0.97 per cent), auto (0.57 per cent) and FMCG (0.47 per cent), while power rose by (3.32 per cent), metal (2.73 per cent), capital goods (2.40 per cent), realty (1.84 per cent), bankex (1.02 per cent) and consumer durables (0.09 per cent).
Among the 30-share Sensex pack, 18 stocks declined and the rest 12 rose during the week.
IT major Infosys was the biggest Sensex loser. The stock fell 6.76 per cent to Rs 1,180.80 after the company's chief operating officer UB Pravin Rao was quoted as saying on Wednesday, 8 June 2016, that the company would face volatility in revenue over the next few quarters. It was followed by Asian Paints (3.31 per cent), Dr Reddy (3.05 per cent), TCS (2.66 per cent), Maruti (2.43 per cent), Hero Motoco (2.31 per cent), Bajaj Auto (1.90 per cent), Bharti Artl (1.87 per cent), HDFC (1.69 per cent) and HDFC Bank (0.93 per cent).
On the other hand, State Bank of India was the top Sensex gainer. It rose 4.94 per cent to Rs 206.20 on reports the bank is considering a proposal to hive off its stressed-loan portfolio into a separate company. It was followed by Bhel (4.83 per cent), ICICI Bank (3.69 per cent), ONGC (2.90 per cent), NTPC (2.27 per cent) and Cipla (2.40 per cent).
The total turnover during the week at BSE and NSE fell to Rs 13,530.99 crore and Rs 83,977.77 crore, respectively, as against last weekend's level of Rs 14,092.84 crore and Rs 1,07,042.86 crore.
Forex: The rupee recovered against the American currency
by 49 paise to end the week at 66.76 per dollar on fresh selling of dollars by banks and exporters on the back of good foreign capital inflows into equity market.
The rupee opened higher at 66.95 per dollar as against the last weekend's level of 67.25 per dollar at the Interbank Foreign Exchange market and firmed up to 4-week high at 66.55 per dollar during the week.
It hovered in a range of 66.55 per dollar and 67.0550 during the week before ending the week at 66.76 per dollar, still showing a gain of 49 paise or 0.73 per cent.
The rupee had last traded at 66.5350 per dollar May 12, 2016 during the intra-day trade.
It had dropped by 22 paise or 0.31 per cent in the last week.
Heavy capital inflows mainly boosted the rupee value against the dollar, a forex dealer said. Hopes of more funds from foreign funds into equity market also got tonic to rupee.
RBI's decision to remain accommodative propelled market to an over 7-month high as the Sensex wrested back control of the crucial 27,000-mark on Tuesday.
In the second bi-monthly monetary policy meeting of this fiscal, RBI kept the repo rate unchanged at 6.50 per cent and the cash reserve requirement at 4 per cent.
Overseas, the US dollar slumped against its major rivals and was under pressure by dismal US payroll data last week, prompting investors to rule out the chance of a hike in the US interest rates this month.
Federal Reserve Chair Janet Yellen indicated this week
that the central bank would hold back from raising rates until new uncertainties about the economic outlook are resolved.
Meanwhile, the RBI fixed the reference rate for the USD at 66.7948 and the euro at 75.4714 as against the last weekend's level of 67.2415 and 74.9944, respectively.
In cross-currency trade, rupee firmed up further against the pound sterling to 96.24 from 96.98 previously.
However, it dropped further against the euro to end at 75.46 as compared to 74.94 and also fell further against the the Japanese Yen to settle at 62.47 per 100 yens as compared to 61.78 earlier week.
In the forward market, premium for dollars remained under pressure due to consistent receipts from exporters.
The benchmark six-month forward dollar premium payable in November declined to 195.25-196.25 paise from the last weekend's level of 200-200.75 and far-forward contracts maturing in May also dropped to 385-385.75 paise from 392-393 paise.
Bullion: Gold prices reversed its four-week down trend
following sharp investment off take and increase in buying interest from stockists and jewellery buyers to hit the psychological Rs 29,000 level attributed mainly due to global surge.
Despite a subdued start, the yellow metal staged a strong comeback during the week trade and maintained the rising momentum till the fag-end.
The yellow-metal had lost a whopping 4.32 per cent in the past four-week downslide.
Elsewhere, silver also rebounded sharply to close above the significant Rs 41,000 mark due to heavy speculative buying coupled with higher industrial demand.
In worldwide trade, weakness in equities helped the gold to boost its safe-haven appeal.
It rebounded to a fresh three-week high on Friday, as investor risk aversion lifted appetite for the metal, putting it on track for a second straight weekly rise.
Often perceived as an insurance against economic and financial concerns, gold has risen more than 2 per cent this week after weaker than expected US payrolls data dented expectations of an imminent rise in US interest rates.
A higher finish for the dollar on the week, kept a cap on any gains for gold.
Market sentiment in Europe has been sour due to fears that a UK referendum, set for June 23, will result in Britain exiting the European Union, a move that might foster instability within the European trading bloc.
Those worries have dragged European stock markets lower and has trickled over into the US equities.
In New York Comex trade, gold for August delivery rose to
finish at USD 1,275.90 an ounce compared to last weekend close of USD 1,242.90 and July silver contract also climbed to settle at USD 17.22 an ounce from USD 16.365.
On the domestic front, standard gold (99.5 purity) commenced sharply higher at Rs 29,145 per 10 grams compared to last Friday's close of Rs 28,655 and surged ahead to hit a high of Rs 29,455, before concluding at Rs 29,440, showing a solid gain of Rs 785 per 10 grams, or 2.73 per cent.
Similarly, pure gold (99.9 purity) also resumed firm at Rs 29,295 per 10 grams against last close of Rs 28,805 and shot up to Rs 29,605, before finishing at Rs 29,590, revealing a smart rise of Rs 785 per 10 grams, or 2.72 per cent.
Silver ready (.999 fineness) too opened positive at Rs 39,540 per kilo from its last weekend level of Rs 38,945 and maintained its strong upmove to touch a high of Rs 41,110, before ending at Rs 41,050, registering a spike of Rs 2,105 per kilo, or 5.40 per cent.
Oils and oilseeds: groundnut surges while, refined
palmolein, linseeds oil, castorseeds bold and castoroil commercial prices dropped at the wholesale oils and oilseeds market during the week under review.
Groundnut oil surged further following sustained demand from stockist and retailers.
However, refined palmolein prices slipped due to subdued demand from retailers.
Linseed oil dropped owing to reduced demand from paint and allied industries.
Castorseeds bold and castor oil commercial extended losses owing to subdued demand from shippers and soap manufacturers.
In the edible segment, groundnut oil prices resumed stable at Rs 1,190 and later moved up to settle at Rs 1,240 from the preceeding weekend level of Rs 1,190, showing a smart rise of Rs 50 per 10 kg.
Refined palmolein commenced stable at Rs 578 and later fell to Rs 569 before ending at Rs 572 per 10kg, showing a loss of Rs 5 per 10kg.
Linseed oil opened lower at Rs 1,270 and later drifted further to settle at Rs 1,200 from the previous weekend level of Rs 1,280, showing a fall of Rs 80 per 10 kg.
Castorseeds bold opened higher at Rs 3,225 and later moved down to finish at Rs 3,185 as against last weekend level of Rs 3,195 per 100 kg, showing a modest loss of Rs 10.
Similarly, castor oil commercial also resumed higher at Rs 675 and later eased further to close at Rs 667 per 10kg as against to Rs 669 previously, showing a marginal loss of Rs 2 per 10 kg.
