Market extends gain for second week, up 265 points

The benchmark BSE Sensex extended its rise for the second consecutive week, gaining 265.14 points to finish at 28,797.25, while the broader Nifty rose 57.05 points to close at 8,866.70.
Carrying on its bullishness, the week ended saw the market opening on a positive note towered by confidence over global liquidity amid shrinking fears of US Fed rate hike any time soon due to weaker-than-expected US jobs data and also a commanding three-and-a-half year high domestic service sector growth.
The frenzy took the key indices to 17-months high to reclaim 29,000-level and Nifty to above 8,950-level, it was soon to be drained on fresh global caution after North Korea tested a nuclear warhead and European Central Bank's (ECB) failure to deliver on new stimulus measures in its meet.

Stock specific news also ruled the week's momentum with Auto stocks surging on rise in domestic passenger vehicle sales for 14th straight month in August, while IT and Tech stocks sliding following services major TCS's outlook warning.
For the week, the Sensex opened higher at 28,631.27 and hovered in a range of 29,077.28 and 28,631.27 before closing at 28,797.25, showing a gain of 265.14 points, or 0.93 per cent. The market had gained 1015 points during two weeks.
The broader Nifty also rose to 57.05 points, or 0.65 per cent, to 8,866.70 after moving between a high of 8,968.70 and a low of 8,848.45. It also gained 294.15 points in two weeks.

The stock market remained closed on Monday, 5

September 2016 on account of holiday due to Ganesh Chaturthi.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 2,075.88 crores during the week, as per Sebi's record including the provisional figure of September 9.
In the broader market, the BSE Mid-Cap index rose 114.38 points or 0.86 per cent to settle at 13,345.32. under performing the Sensex. The BSE Small-Cap index gained 217.33 points or 1.72 per cent to settle at 12,861.39, outperforming the Sensex.
Among the S&P, BSE sector and industry indices, Realty rose by 5.67 per cent, followed by Auto 2.40 per cent, Healthcare 2.18 per cent, Capital Goods 2.00 per cent, Bankex 1.96 per cent, Consumer Durables 1.93 per cent, Oil&Gas 1.79 per cent, Power 1.69 per cent, Metal 1.39 per cent and FMCG 0.15 per cent.

However, IT fell by 1.88 per cent and Tech by 1.44 per cent.
Among the 30-share Sensex pack, 24 stocks gained and remaining six stocks declined during the week.
ONGC surged 6.51 per cent. The company's net profit dropped 21.15 per cent to Rs 4232.54 crore on 20.23 per cent decline in total income to Rs 18737.18 crore in Q1 June 2016 over Q1 June 2015. It was followed by Tata Steel 5.57 percent, ICICI Bank 4.90 per cent, Maruti 4.70 per cent, Tata Motors 4.22 per cent, SBI 3.79 per cent, Lupin 3.44 per cent, Reliance 3.05 per cent and Axis Bank 2.34 per cent.

TCS slumped 6.41 per cent. The stock was the biggest loser from the Sensex pack. The company warned of a slowdown in discretionary spending in banking, financial services and insurance (BFSI) vertical by its US clients. It was followed by HDFC 1.89 per cent, ITC 1.43 per cent and NTPC 0.63 per cent.
Bullion: Gold maintained its losing streak for the fifth
week in row at the domestic bullion market as continuous overseas bearishness loomed the domestic sentiment, coupled with tepid jewellery demand amid prevailing cash crunch after government's demonetisation announcement on November 8.
Absence of global fillip on expectation of US fed rate hike this month mainly pressured the metal, while fall in demand from jewellers and retailers in view of scarcity of funds, further weighed on gold prices.

Gold demand remained subdued despite a drop in prices, a trader said.
Standard gold shed a whopping 8.84 per cent in its fifth week downslide, or Rs 2,625.00 per 10 grams.
Yesterday, standard gold (99.5 purity) prices closed to Rs 28,035 per 10 grams, a level that has not been seen since March 28, 2016.
Elsewhere, silver rebounded sharply to close above the significant Rs 41,000 mark due to heavy speculative buying coupled with higher industrial demand.
In worldwide trade, gold finished at its lowest levels since February, marking the fifth weekly loss in a row, as the dollar firmed, in anticipation of an interest rate hike at next week's Federal Reserve meeting.

Market-based indicators put the odds of a Fed rate hike next week at nearly 100 per cent. The move would be central bank's second post-crisis rate hike. The first occurred nearly a year ago, at the Fed's December 2015 policy meeting.
Higher interest rates typically cause the dollar to strengthen, which often weighs on commodities like gold which have prices denominated in dollars.
Gold for February delivery declined by USD 10.50, or 0.9 per cent, to settle at USD 1,161.90 an ounce. Prices marked their lowest finish since early February, and lost roughly 1.1 per cent for the week. That was the longest stretch of consecutive weekly losses this year.

In the New York Comex trade, gold for delivery in February
tanked to USD 1,161.90 an ounce as compared to last Friday's close at USD 1,177.80, while silver for March rose to USD 16.967 an ounce from USD 16.832.
On the domestic front, standard gold (99.5 purity) resumed higher at Rs 28,530 per 10 grams from last Friday's closing level of Rs 28,380 and later plunged to close at Rs 28,035, revealing a loss of Rs 345, or 1.22 per cent.
Pure gold (99.9 purity) also commenced higher at Rs 28,680 per 10 grams as compared to preceding weekend's level of Rs 28,530 and drifted to finish at Rs 28,185, showing a loss of Rs 345, or 1.21 per cent.

Oils and Oilseeds: Edible oils gains, while non-edible
oils declined further at the Vashi oils and oilseeds wholesale market during the week under review.
Groundnut oil recovered smartly following renewed demand from stockists and retailers amidst adequate supply position.
Refined palmolein prices gained marginally on the back of persistent buying from retailers.
Castorseeds bold and castoroil commercial dipped owing to weak offtake from soap and shippers industries.
Linseed oil maintained a steady trend in the absence of any worthwhile buying.
In edible oils segment, groundnut oil opened stable at Rs 980, later rose to Rs 1,020 before ending at Rs 1,000 from previous weekend's level of Rs 980, showing a rise of Rs 20 per 10 kg.

Refined palmolein resumed higher at Rs 608 and gained further to Rs 611 before finishing at Rs 603 as compared to last Saturday's level of Rs 602, revealing a marginal gain of a Rs 1 per 10 kg.
Turning to non-edible section, castorseeds bold opened higher at Rs 3,935 and moved in a range of Rs 3,950 and Rs 3,925 before finishing at Rs 3,915 from preceding weekend's level of Rs 3,925, showing a fall of Rs 10 per 100 kg.
Castoroil commercial also resumed higher at Rs 817 and moved in a range of Rs 820 and Rs 815 before ending at Rs 813 from last weekend's level of Rs 815, showing a marginal loss of Rs 3 per 10 kg.
Forex: The Indian rupee continued its aggressive recovery
momentum and ended at a nearly one-month high of 67.42 largely driven by frantic dollar unwinding by speculative traders and corporates.
Scripting its best weekly gain since March this year - the home currency appreciated by a whopping 78 paise or 1.14 per cent.
A spectacular rally in domestic equities alongside renewed capital inflows predominantly kept sentiment highly buoyant even amid a widely expected interest rate hike from the Federal Reserve.
The forex market witnessed unexpected moves by the Reserve Bank of India (RBI) even as the Federal Reserve is largely expected to raise rates this upcoming meet.
Defying expectations, the Monetary Policy Committee kept short-term lending rate unchanged and also lowered GDP growth rate to 7.1 per cent in the midst of short-term disruption in economic activities due to demonetisation.
At the Interbank Foreign Exchange (forex) market, the local unit resumed a tad higher at 68.18 from last Friday's closing value of 68.20.
It gained further ground as the strong momentum continued into mid-week and the strength was validated by the rupee hitting a high of 67.32 before concluding at 67.42, showing a steep rise of 78 paise, or 1.14 per cent.
The local unit touched a low of 68.27 briefly before rebounding.
Meanwhile, the US dollar remained highly bullish on widespread improvements in the US economy with consumer spending up and CPI on the rise.
The dollar index, which measures the greenback against a basket of major currencies end at 101.60 from 100.75 a week earlier.
In the meantime, India's foreign exchange reserves drifted further by USD 1.431 billion to USD 363.874 billion in the week to December 2.
They had touched a life-time high of USD 371.99 billion in the week to September 30, 2016.
This week saw FIIs returning to their buying spree in equities after a prolonged selling and infused a net amount of USD 151.88 million.
RBI fixed the reference rate for the USD at Rs 67.5840 and Euro at Rs 71.7607 against preceding week's level of Rs 68.3689 and Rs 73.0385, respectively.
Underlying rupee buoyancy was reflected in cross-currency trade too with pound sterling recovering sharply to end at 85.01 as compared to 86.10 and rebounded against the euro to close at 71.43 from last weekend's level of 72.56.
The home currency also maintained its edge against the Japanese yen to settle firmly higher at 58.83 from 59.88 per 100 yens earlier.
In the forward market, premium for dollar firmed up due to sustained paying pressure from corporates.
The benchmark six-month forward dollar premium payable in May rose to 132-134 paise from 128-130 paise and the far-forward contracts maturing in November 2017 also moved up to 277-279 paise from 272-274 paise.
On the global front, the greenback rebounded sharply after a brief setback and higher against the other majors currencies boosted by the release of robust US consumer sentiment data and also supported by growing expectations of an imminent Fed rate hike in its policy meeting next week.
The consumer sentiment index rose to a 23-month high of 98.0 in December from 93.8 the previous month.
The Euro was hit hard - tumbling to multi-year lows before regaining some lost ground largely impacted by the European Central Bank's latest policy move.
The ECB President Draghi announced an extension of the groups two-year stimulus program beyond the initial March 2017 expiration.
Global commodity trade, crude prices maintained its strong upmove on hopes that non-OPEC producers meeting in Vienna over the weekend would agree to cut output to bolster OPEC's own agreement to limit production.