Markets post second weekly gains on GST hopes

Shrugging off global volatility, the truncated week saw the benchmark Sensex extending its rally for the second straight week to log the psychological 26,000-level and the Nifty breaching the crucial 7,900-mark.
The holiday-shortened week started with stocks trading sluggish amid volatility due to November monthly expiry derivative contracts and global weakness following renewed Chinese growth concerns, as commodities witnessed a slide.
The sentiment got a boost despite volatility on the November derivative expiry day which coincided with the opening of Winter Session of Parliament amid hopes over the passage the GST Bill as the market players opted for hectic short-covering and value-buying in fundamentally strong shares.

Also, gains in European market supported the sentiment.
Expectations on GST Bill during the current Parliament session further fuelled after Prime Minister Narendra Modi invited Congress President Sonia Gandhi and former Prime Minister Manmohan Singh for tea, leading investors to enlarge positions.
The Sensex resumed resumed higher at 25,945.14 and hovered between a high of 26,184.65 and low of 25,703.86 before ending the week at 26,128.20, showing a gain of 259.71 points or 1.00 per cent.

The Sensex gained 517.67 points, or 2.02 per cent, in last two weeks.
The 50-share Nifty also rose by 86.15 points, or 1.10 per cent to 7,942.70. It gained 180.45 points, or 2.32 per cent, in the last two weeks.

Meanwhile, foreign portfolio investors (FPIs) and
foreign institutional investors (FIIs) bought shares worth Rs 1,294.27 crore during the week, as per Sebi's record including the provisional figure of January 27.
In the broader market, the BSE Mid-Cap index rose 3.02 per cent and the BSE Small-Cap index advanced 2.75 per cent. Both these indices underperformed the Sensex.
Among sectoral and industry indices, Metal rose by 5.93 percent, followed by consumer durables 5.55 percent, PSU 5.46 percent, Oil&Gas 4.86 percent, Banking 4.76 percent, Auto 4.47 percent, IPO 3.75 percent, Power 3.72 percent, Realty 2.15 per cent and Teck 1.08 per cent.

Among the 30-share Sensex pack, 25 stocks advanced and remaining 5 stocks fell during the week.
Key benchmark indices posted strong gains led by Index heavyweights HDFC rose by 10.72 percent followed by Adaniports 6.73 per cent, SBIN 6.18 per cent, Tata Motors 4.05 per cent, Bajaj Auto 5.51 per cent, M&M 5.03 per cent, Axis bank 4.94 per cent, GAIL 4.87 per cent, Hero Motoco 5.21 per cent, HDFC Bank 4.64 per cent and Tata Steel 3.22 per cent.
While, Wipro lost 2.35 per cent the stock was the biggest loser from the Sensex pack followed by Infosys 0.70 per cent and Reliance 0.05 per cent.

Bullion: Both the precious metals, gold and silver
slipped and succumbed to fresh bouts of profit-taking at the domestic bullion market bringing an abrupt end to a straight four-weeks gain.
Subdued demand from jewellery traders at current levels and a smart recovery in local equities further dampened the yellow metal, sliding below the key psychological Rs 28,000-mark amidst bearish global cues.
"Gold demand improved this week, boosted by a fall in prices overseas, though some consumers are waiting in the hope that import duty will be cut in the government's budget next week," a dealer said.
Elsewhere, silver also witnessed heavy unwinding by speculative stockists and traders to end below the Rs 40,000- level last seen at January 10, 2017.

In worldwide trade, Gold futures ended lower yesterday for the fourth day in a row, losing more than 1 percent for the week as strength in the dollar and recent all-time highs in major US stock indexes weakened demand for so-called safe-haven investments.
"Gold found itself exposed to painful losses this week after the renewed investor risk appetite from the Trump effect and dollar's resurgence encouraged sellers to attack the metal incessantly," a dealer said.
Gold for February delivery fell USD 1.40 yesterday, to settle at USD 1,188.40 an ounce settled roughly 1.4 percent lower for the week.
Gold has posted declines each day since ending Monday at USD 1,215.60-its highest settlement since November 17.

While, March silver climbed by 28.60 cents, to USD 17.136 an ounce, erasing its weekly loss. It was up about 0.6 percent from last Friday's settlement of USD 17.032 per ounce.