Profit booking from operators ahead of the expiry of derivative contract failed to maintain mid- week gains even though the BSE benchmark sensex ended marginally higher by seven points during the week.
Brokers commented sentiment dampened as investors also focused on RIL reporting fourth straight quarterly drop in profit.
The BSE benchmark sensex resumed higher at 18,690.99 and firmed up further to 18,806.56 on the back of strong buying in FMCG,Consumer Durables and Banking counters.
Brokers said some short-covering activity ahead of the expiry of October contract next week amid renewed hopes of cut in interest rates by RBI in the forthcoming monetary policy meeting on October 30,also helped boost sentiment.
However,it failed to maintain gains due to selling pressure mainly in Metal,Realty,Refinery and Capital Goods counters.
The Sensex declined afterwards to 18,535.37 before settling at 18,682.31,showing a mere gain of 7.13 points or 0.04 per cent from its last weekend’s level.
The NSE 50-share Nifty also moved up by 8.20 points or 0.14 per cent to finish at 5,684.25.
The overall inflation rose to its highest level this fiscal at 7.81 per cent in September,diminishing hopes of key interest rates cut in the forthcoming monetary policy review by the apex bank.
The market also received support on firming global trends as China’s economic data indicated some stabilisation in the world’s second largest economy,while positive US housing data eased worries about global slowdown.
Brokers said investors,confused over the on-going political chaos,decided to book profits and play safe ahead of the expiry of derivatives contract on October 25.
Auto scrips fell on lower-than-expected sales,while metal stocks were hit on fears of slowdown in China hitting demand.
Meanwhile,foreign institutional investors (FIIs) have invested comparatively small amount of Rs 363.11 crore during the week including the provisional figure of Oct 19.
From the 30-share Sensex family,20 scrips finished with losses while 10 ended with gains.
Major losers were Gail India (5.11 per cent),M&M (3.62 per cent),Tata Steel (3.19 per cent),Sun Pharma (2.84 per cent),Jindal Steel (2.53 per cent),Hindalco Ind (2.46 per cent),Sterlite Ind (2.43 per cent) Coal India (1.58 per cent) and HUL (1.25 per cent).
However,ITC rose by 5.12 per cent followed by Hero Motoco 3.93 per cent,Tata Power 2.63 per cent and Bharti Airtel 2.43 per cent.
Among the major indices the BSE-Metal fell by 2.53 per cent followed by the BSE- Realty 1.36 per cent and the
BSE-Oil&Gas 1.24 per cent,while the BSE-FMCG rose by 2.65 per cent and the BSE-CD 1.93 per cent.
The total turnover at BSE and NSE fell to Rs 11,294.72 crore and Rs 52,061.03 crore,respectively from the last weekend’s level of Rs 12,086.76 crore and Rs 58,472.73 crore.
Forex: The rupee plunged by 103 paise to close at one- month low of 53.84 against the Greenback during the week under review on the back of heavy dollar demand from importers amid slowdown in capital inflows.
The sentiment was also dampened after the headline inflation (Wholesale Price Index) rose to its highest level this fiscal at 7.81 per cent in September,a development that may restrain RBI from cutting interest rates at its monetary policy review laster this month on October 30.
Consolidating local stock market also weighed on therupee,a forex dealer said.
At the Interbank Foreign Exchange (Forex) market,the local currency commenced lower at 53.00 and moved in a range of 52.65 and 53.99 before concluding the week at 53.84,showing a fall of 103 paise or 1.95 per cent — its biggest weekly loss in about four month. Last week,it had dipped by 96 paise,or 1.85 per cent.
This was the weakest closing for the rupee since it closed at 54.38 on September 20. The rupee after closing at a recent high of 51.74 on October 4,appears to have lost steam and is seen hurtling towards 54-mark as FII inflows have slowed,said forex dealers.
The main reason behind the rupee fall was heavy dollar buying by importers,mainly oil refiners,and some banks on hopes of fall in dollar value overseas.
The Indian benchmark sensex closed the week barely stable,but in positive terrain,up by a mere 7 points.
Pramit Brahmbhatt,CEO,Alpari Financial Services (India) said,”The INR started the week on a weak note and failed to make a recovery on the second day of the week,reversing its gains on the last two days.
The INR turned weak on cramped up demand from importers who had delayed their payments in anticipation of further strengths in dollar”.