Markets halt two-week decline; Sensex, Nifty gain nearly 2%

Witnessing their strongest weekly gains in over two months, both the benchmark indices -- Sensex and Nifty -- rose nearly 2 per cent to finish at 25,519.22 and 7,761.95, respectively.
The gains were sustained due to stable currency, improved domestic macro factors and sliding crude which foiled the ripple effect of the much-awaited US Federal Reserve interest rate hike announcement during the week.
Most of the week's trading momentum was marked by soothing domestic macro data led by surging industrial production figures (IIP), while rallying European stocks amid Fed rate hike assuaged by dovish comments from its chief Janet Yellen, helped the market gain.

Besides, value buying amid slight rebound in crude oil prices supported the market.
The reassuring statements from Finance Minister Arun Jaitley that the proposed Goods and Services Tax (GST) rate would be less than 18 per cent and on likely scrapping of 1 per cent additional tax, lifted the corporate sentiment.
Additionally, metal stocks gained on imposition of anti-dumping duty of up to 57.39 per cent by the government.

Fitch Ratings' statement that India is not immune to potential market jitters following an interest rate hike by the US Fed, but favourable growth outlook makes it attractive for foreign investors, also boosted the momentum.

The Sensex resumed lower at 24,935.60 and hovered between a high of 25,831.31 and a low of 24,867.73 before finishing the week at 25,519.22, showing a gain of 474.79 points, or 1.90 per cent.
The 50-share NSE Nifty also gained 151.50 points, or 1.99 per cent, to 7,761.95.
Across the spectrum buying was witnessed in metal, power, realty, healthcare, oil & gas, consumer durable, technology, auto, IT, banks, capital goods and FMCG sectors.
Foreign portfolio investors (FPIs) bought shares worth
Rs 242.94 crore during the week as per the Sebi's record, including the provisional figure of December 18.
The BSE small-cap and mid-cap indices rose by 2.84 per cent and 3.25 per cent, respectively. Both these outperformed the Sensex.

Among the 30-share Sensex pack, 25 stocks rose and the rest five stocks declined in the week ended.
Major gainer from the Sensex pack was Tata Steel (6.00 per cent) followed by Hero Motoco (4.69 per cent), Hindalco (4.72 per cent), Hindunilever (4.65 per cent), Sun Pharma (4.27 per cent), HDFC (4.18 per cent), Reliance (4.18 per cent), ONGC (3.60 per cent), Infosys (3.19 per cent) and Bharti Airtel (3.17 per cent).
However, Wipro lost by 2.05 per cent followed by M&M by 1.73 per cent, Axis Bank by 1.68 per cent, ITC by 1.14 per cent and SBI by 0.20 per cent.

Among the S&P BSE sectoral indices, Power rose by 4.24 per cent, Metal by 4.07 per cent, Realty by 3.11 per cent, Healthcare by 2.36 per cent, Oil&Gas by 2.32 per cent, Teck by 2.03 per cent, Auto by 1.84 per cent, IT by 1.83 per cent, Bankex by 1.51, Capital Goods by 1.33 per cent and FMCG by 0.94 per cent.
Forex: Indian rupee largely withstood the Fed-fuelled rate
storm and surged ahead to end at a three-week high of 66.40 against USD, following heavy dollar unwinding by foreign banks and speculative traders.
The home currency had cracked the psychologically significant 67-barrier to hit a 27-month low of 67.09 briefly on Monday before rebounding amid heightened uncertainties over an impending Fed rate hike and concerns related to capital outflows.

A spectacular rally in domestic equities further supplemented the rupee upmove in a week marked by the first US interest rate hike in nearly a decade aftermath of global financial meltdown in 2008.
Major world and emerging market currencies too reacted vehemently to the landmark outcome, ending months of lingering confusion and uncertainty.
The most powerful central bank in the world - the US Federal Reserve's announced a quarter-point increase in the target range for the federal funds rate to 0.25-0.5 per cent.
In active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit resumed sharply lower at 67.09 per dollar as against last weekend's close of 66.88 on heavy dollar demand and plunged further to 67.1250.

However, the domestic unit staged a resounding comeback from its multi-month lows aftermath of the historic Fed rate hike event to touch a high of 66.3150 on unwinding of long dollar positions by speculators before ending at 66.40, showing a solid gain of 48 paise, or 0.72 per cent - the level not seen since November 24.
Robust stockpile of forex reserves and improving
macroeconomic environment alongside policy reforms by the Narendra Modi government and measures taken by RBI Governor Raghuram Rajan predominately helped the Indian currency to withstand the volatility and pressure, a forex dealer said.
"The re-rating of India story and growing confidence in growth outlook which stands the best with a 7.4 per cent growth, also bolstered sentiment, he added.

The home currency has largely held its ground against the dollar, falling just 4.81 per cent since the start of the year, outperforming its global peers.
Foreign funds turned net buyers with USD 37.75 mn inflows during the first four days of the week as per the Sebi's record.
In the forward market, premium for dollars fell on good receiving from exporters.
The Benchmark six-month forward dollar premium payable in May fell to 187-189 paise from preceding weekend's level of 193.5-195.5 paise and far-forward contracts maturing in November also dropped to 396-398 paise from 401.5-403.5 paise.
The RBI fixed the reference rate for the USD at 66.4235 and the euro at 72.1359 from last weekend's level of 66.7860 and 73.1040, respectively.

In cross-currency trade, rupee rose against the pound sterling to 99.15 from 101.28 from last weekend level and also moved up to 71.90 per euro from 73.36 per euro previously.
Oils and Oilseeds: Groundnut oil recovers, refined
palmolein and castorseeds declines further, while linseed oil ruled stable at the Vashi oils and oilseeds wholesale market during the week under review.
Groundnut oil rebounded on sudden spurt of stockists and retail demand on the back of restricted arrivals from producing regions.
On the other hand, refined palmolein weakened further on stockists selling amid poor buying support.
Castorseeds bold and Castro commercial dropped further on subdued demand from shippers and soap industries.

Linseed oil ruled stable in the absence of any major buying activity.
In the edible oils segment, groundnut oil opened stable at Rs 940, but later surged to close at Rs 960 from its last Saturday's closing level of Rs 940 per 10kg, showing a good gain of Rs 20.
Refined palmolein also resumed steady at Rs 465 and later drifted down to finish at Rs 455 from its previous level of Rs 465, showing a loss of Rs 10 per 10kg.
Among the non-edibles, castorseeds bold commenced lower at Rs 3,850 and fell to close at Rs 3,800 from previous weekend's level of Rs 3,865, showing a fall of Rs 65 per 100 kg.
Castor oil commercial also resumed lower at Rs 800 and declined further to end at Rs 790 from last weekend's level of Rs 803, revealing a loss of Rs 13 per 10kg.
Bullion: Gold slips, silver continued its downtrend at the
bullion market here during the week under review.
The week saw the precious metals starting strong and later encountered profit taking by local trader at higher levels and continued to fall further to finish below psychologically 25k mark due to renewed selling from stockists and jewellery traders on the back of bearish global markets.
Elsewhere, silver witnessed a roller-coaster ride, but maintained its downtrend towards fag end following hectic selling pressure from speculators and stockists coupled with lack of industrial demand.
In worldwide trade, gold futures climbed yesterday as the dollar softened a day after jolting higher in the wake of a historic interest-rate hike by the Federal Reserve. But the prices still finished 1 per cent lower for the week.
February gold gained USD 15.40 to settle at USD 1,065 an ounce at NYMEX, a day after sinking to its lowest settlement since 2009 Thursday.
In the New York Comex trade, gold for February fell to settle at USD 1,065 an ounce compared to last Friday's level of USD 1,075.70, while March silver contract rose to end at 14.096 an ounce from USD 13.884 previously.
On the domestic front, standard gold (99.5 purity) resumed higher at Rs 25,535 per 10 grams as against last Friday's level of Rs 25,230 and later drifted to a low of Rs 24,955 before concluding at Rs 24,935, showing a loss of Rs 295 per 10 grams, or 1.17 per cent.
Similarly, pure gold (99.9 purity) also opened higher at Rs 25,685 per 10 grams from preceding weekend level of Rs 25,380 and immediately fell to a low of Rs 25,105, before closing at Rs 25,085, revealing a fall of Rs 295 per 10 grams, or 1.16 per cent.
Silver ready (.999 fineness) commenced slightly higher at Rs 34,075 from previous closing of Rs 34,030 and touched a a high of Rs 34,170, before drifting to settle at Rs 33,520, registering a loss of Rs 510 per kilogram, or 1.50 per cent.