The benchmark Sensex recovered major part of its last week’s losses and gained over 320 points to settle at a two-week high of 17,749.65 during the extended week under review.
The heavy buying,bulk of which on Friday,was triggered by announcement of massive bond buying programme by European Central Bank to contain the region’s debt crisis.
The BSE and NSE were open for one-and-half hour on Saturday for a special live trading to test the disaster recovery (DR) site at the BSE.
Increase in investors risk appetite after ECB on Thursday revealed an unlimited bond-buying plan to save the region’s currency pulled the benchmark sensex by over 337 points or 1.95 per cent on Friday. Better-than-expected private sector jobs data in US also aided the sentiment.
Buying was strong and across the board with all 13 sectoral indices closing with gains of between 0.10 pct and 4.20 pct with IT,Teck,Auto,Realty and Consumer Durable at the forefront.
The Bombay Stock Exchange 30-share barometer resumed slightly better but dropped to a low of 17,250.80 on Wednesday on weak global cues a day ahead of ECB meet.
Later,it bounced back after ECB late Thursday announced fresh steps to contain the region’s debt crisis by unlimited sovereign bond-buying.
The sensex finally ended the week at 17,749.65 against last weekend’s close of 17,429.56,showing a rise of 320.09 points or 1.84 pct. In the preceding week,the sensex had tumbled by 353.65 points or 1.99%.
The NSE wide-based Nifty also rebounded by 100.20 points,or 1.91 per cent,to settle at two-week high of 5,358.70.
Reports that HSBC India manufacturing Purchasing Managers’ Index -a measure of factory production- eased to 52.8 (weakest growth in last nine months) in August from 5.9 per cent in July and also lowering of India’s growth forecast by Morgan Stanley to 5.1 per cent for the current fiscal from 5.8 per cent,initially weighed on the market sentiment,a broker said.
Foreign Institutional Investors (FIIs) continued their buying spree and bought shares worth Rs 745.38 crore on first five days of the week,including provisional data of Sept. 7.
IT counters were at the forefront on fall in rupee value to 56 as it will likely help these companies to boost sales in rupee terms.
Overall,23 out of 30 Sensex-based scrips closed with gains while others finished with losses. Maruti Suzuki was the top gainer from the Sensex pack with a rise of 6.24 per cent followed by Infosys (5.16 per cent),Tata Motors (5.11 per cent),Bajaj Auto (4.24 per cent),HUL (4.20 per cent),Bharti Airtel (3.60 per cent) Wipro (3.53 per cent),ICICI Bank (3.48 per cent),Cipla (3.33 per cent),Tata Steel (3.11 per cent),RIL (3.04 per cent),Tata Power (3.02 per cent),Hindalco (2.99 per cent),Dr Reddy’s Lab (2.98 per cent),SBI (2.73per cent),TCS (2.66 per cent),L&T (2.28per cent),Sterlite Ind (2.18 per cent),Coal India (2.15 per cent) and Gail India (2.12 per cent).
However,BHEL declined by 5.53 per cent and ITC by 1.55 per cent.
Among sectoral indices,the BSE-IT was the top gainer with a rise of 4.20 per cent followed by BSE-Teck (4.18 per cent),BSE-Auto (3.24 per cent),BSE-Realty (2.72 per cent),BSE-CD (2.53 per cent),BSE-Oil&Gas (2.00 per cent) and BSE-HC (1.95 per cent).
The total turnover at the BSE and the NSE were relatively low at Rs 9,146.43 crore and Rs 43,692.26 crore from last weekend’s turnover of Rs 10,363.05 crore and Rs 52,068.03 crore.
Oil and oilseeds: Edible and non-edible oils dipped at the oils and oilseeds market during the week under review.
Groundnut oil prices witnessed a drifting trend this week following stockist selling and reduced retail offtake amidst good arrivals from producing belts.
Refined palmolein also slid on lack of retail buying on the back of bearish Malaysian cues.
Castorseeds bold and castoroil commercial prices encountered further selling to drop further in the absence of demand from shippers and soap industries.
Castorseeds futures also slumped on hectic speculative sell-off on lack of export inquiries.
Linseedoil prices eased owing to lower demand from paint and allied industries.
In the edible oils segment,groundnut oil resumed slightly lower at Rs 1,245 later declined to end at Rs 1,230 from preceding weekend’s level of Rs 1,250. Showing a loss of Rs 20 per 10 kg.
Refined palmolein resumed marginally higher at Rs 612 and moved in a range of Rs 616 and Rs 607 before settling at Rs 602 from last weekend’s level of Rs 610,registering a loss of Rs 8 per 10 kg.
In the non-edible section,castorseeds bold resumed weak at Rs 3,850 and hovered between Rs 3,865 and Rs 3,825 before closing at Rs 3,700 from last weekend’s level of Rs 3,950,a fall of Rs 250 per 100 kg.
Castoroil commercial also opened lower at Rs 800 and traded between Rs 803 and Rs 795 before ending at Rs 770 from its previous weekend’s level of Rs 820,a loss of Rs 50 per 10 kg.
Linseed oil resumed steady at Rs 840,later drifted to finish at Rs 830 per 10 kg from preceding weekend level of Rs 840,a loss Rs 10 per 10 kg.
Moving to the futures section,castorseeds for September delivery resumed lower at Rs 4,000 and moved in the range of Rs 4,020 and Rs 3,758 before concluding at Rs 3,765 from last Saturday’s closing level of Rs 4,040 showing a net fall of Rs 275 per tonne.
Forex: The rupee appreciated by 16 paise to close at two- week high of 55.36 against the Greenback during the week under review on late dollar selling by exporters amid smart rally in domestic equities.
Weak dollar overseas amid sustained capital inflows also helped the rupee rise.
At the Interbank Foreign Exchange (Forex) market,the local unit resumed the week higher at 55.44 a dollar from last weekend’s close of 55.52 and breached the 56-mark to log its more-than three-week intra-trade low of 56.03 in early trade on Thursday.
However,it bounced back on the last two days to a high of 55.35 before concluding the week at 55.36,showing a rise of 16 paise of 0.29 pct. Last week,it had eased by two paise.
On the eve of European Central Bank’s (ECB) meet on Thursday,the rupee rebound from the week’s low and rallied on the next day after ECB announced a programme to buy an unlimited sovereign bonds to contain euro-zone debt crisis.
After that,the euro also recovered from its 3-1/2-month low against the dollar,ultimately helping exporters to sell dollars on hopes of further in dollar value,which helped the rupee rise.
The BSE benchmark Sensex closed the week higher by over 320 points,or 1.84 per cent.
Pramit Brahmbhatt,CEO,Alpari Financial Services (India) said,”After a lower start the INR continued to pare gains towards the mid week for or over two week lows but then pared weakness on the last two days of the week and ended higher. The Jackson Hole symposium induced strengths in INR where the Fed Chairman Ben Bernanke and the other FOMC members showed up their willingness to support the US economy by providing the required QE3 as and when needed,boosted the global markets sentiments.”