The benchmark Sensex scored its best weekly number in four months by gaining 517 points to finish at 26,747 — a new 1-month high — while the broader Nifty finished above the key 8,200-level. For both benchmarks, the weekly number is the highest since September 2 and it is the best Sensex closing since November 11 when the figure stood at 26,818.82.
The key indices regained their footing for the week despite RBI’s surprise move to hold interest rates. The market was comforted after the European Central Bank extended its massive stimulus beyond March though it scaled down the size of the purchase. Return of foreign investors also buoyed mood.
Trading started in anticipation of rate cut from RBI in its two-day policy review, with rate-sensitive stocks gaining an upperhand on short-covering amid firmness in US markets in spite of the Italian political turmoil.
In his second monetary policy, Reserve Bank Governor Urjit Patel left the repo rate — at which RBI lends to banks for short term — intact at 6.25 per cent and the cash reserve ratio — the share of deposits lenders park with the central bank — at 4 per cent.
The decision to abolish the temporary 100 per cent CRR came as relief to banking stocks. Investor optimism in the wake of the global rally after ECB’s stimulus action led to the market bounceback.
During the week, the Sensex gained 516.52 points, or 1.97 per cent, to settle at 26,747.18. It hovered in the range of 26,803.76 and 26,125.35 during the week.
The Nifty 50 index during the week climbed 174.95 points, or 2.16 per cent, to close at 8,261.75 after shuttling between 8,274.95 and 8,056.85.
The buying was led by metal, auto, realty, oil and gas, PSUs and banks, except healthcare stocks.
The second-line shares of mid-cap and small-cap companies witnessed good buying activity.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 1,225.74 crore during the week, as per Sebi’s record including the provisional figure of December 9.
In the broader market, the BSE Mid-Cap index rose 336.04 points, or 2.75 per cent to settle at 12,535.22. It outperformed the Sensex. The BSE Small-Cap index advanced 236.88 points, or 1.96 per cent to close at 12,320.08, matching the Sensex’s gains in percentage terms.
Among sectoral and industry indices, metal rose by 5.16 per cent, followed by auto 4.17 per cent, realty 3.89 per cent, oil&gas 3.45 per cent, bankex 2.57 per cent, FMCG 2.00 per cent, consumer durables 1.86 per cent, power 1.80 per cent, tech 1.17 per cent, IT 1.14 per cent and capital goods 0.68 per cent, while healthcare fell by 0.51 per cent.
Among the 30-share Sensex pack, 25 stocks rose and remaining 5 stocks declined during the week.
Adani Ports & Special Economic Zone was the biggest gainer in the Sensex pack which rose by 7.26 per cent.
Tata Motors surged 7.16 per cent. The company said that Jaguar Land Rover (JLR), the UK’s leading manufacturer of premium luxury vehicles, reported its best ever November retail sales. JLR reported 2 per cent rise in total sales to 47,588 vehicles in November 2016 over November 2015.
Tata Steel jumped 5.88 per cent. Tata Steel UK on Wednesday, reached an agreement with trade unions on a number of proposals that would structurally reduce risks and help secure a more sustainable future for its UK business.
It was followed by ONGC 5.37 per cent, SBI 4.56 per cent, Asian Paints 4.07 per cent, M&M 3.96 per cent, ICICI Bank 3.35 per cent, Maruti 3.30 per cent, ITC 3.24 per cent, Bharti Airtel 3.22 per cent, Reliance 3.12 per cent and Hero Motoco 3.06 per cent.
However, the BSE Healthcare index declined 0.51 per cent. Sun Pharmaceutical Industries was the biggest Sensex loser, down by 6.46 per cent followed by TCS 1.37 per cent, Axis Bank 0.76 per cent, Dr Reddy’s 0.68 per cent and Wipro 0.30 per cent.
The total turnover during the week on BSE and NSE fell to Rs 11,740.51 crore and Rs 76,902.18 crore, respectively, as against last weekend’s level of Rs 13,981.54 crore and Rs 1,02,280.80 crore.