Despite initial scare on proposal like tax on higher dividend distribution, the much awaited Budget saw bulls prevailing upon the bears as investors digested Finance Minister's resolve for fiscal prudence and keep deficit at 3.5 per cent for 2016-17, leading to an all-out expectation that RBI will ease monetary policy.
Optimism multiplied with budgetary allocation on growth supportive fundamentals of nearly Rs 36,000 crore for infra and farm sectors and government providing Rs 25,000 crore to tackle NPAs for banking sectors apart from additional Reserve Bank relaxing capital regulations norms for lender banks.
Improving global stocks scenario also proved to be supportive for the domestic market during the week, while the latest data of International Monetary Fund (IMF) on India's growth estimated at 7.3 per cent this fiscal and 7.5 per cent next year even as recovery remains uneven, boosted the positive vibe.
Sensex zoomed by 1,492.18 points or 6.44 per cent to end the week at 24,646.48 after moving in a range of 24,719.05 and 22,494.61, which is the best weekly performance since December 2011.
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Rs 4,800.16 crore during the week as per the SEBI's record, including the provisional figure of March 4.
Back home, in the broader market, the BSE Mid-Cap index advanced 652.16 points or 6.81 per cent to settle at 10,224.84. The BSE Small-Cap index advanced 730.52 points or 7.65 per cent to settle at 10,285.75. Both these indices outperformed the Sensex.
Among the S&P, BSE sector and industry indices, Bankex rose by 11.75 per cent, followed by Realty 11.34 per cent, Metal 10.22 per cent, Capital Goods 7.27 per cent, Power 6.15 per cent, Auto 5.95 per cent, IT 5.07 per cent, FMCG 4.79 per cent, Teck 4.73 per cent, Healthcare 4.30 per cent, Oil&Gas 3.91 per cent and Consumer Durables 3.63 per cent.
Among major gainers were, bank stocks which logged sharp gains. State Bank of India 20.58 per cent, ICICI Bank 19.29 per cent, Tata Steel 16.08 per cent, Tata Motors 13.68 per cent,Bhel 12.78 per cent, Adani Ports 12.67 per cent, Gail 11.99 per cent, Hero Motoco 10.77 per cent, ITC 8.59 per cent, Dr Reddy Labs 8.38 per cent, Axis Bank 7.71 per cent, L&T 7.48 per cent, HDFC 6.84 per cent, TCS 6.52 per cent and HDFC Bank 6.38 per cent.
However, ONGC fell by 6.51 per cent, followed by Sun Pharma 1.59 per cent and M&M by 0.94 per cent.
after three straight weeks of downslide and ended at a fresh 2-1/2 month high of 67.08 against its US counterpart following massive selling of dollars by banks and exporters.
A large uptick in foreign capital inflows into debt and equities predominantly supported the domestic currency to sustain its spirited rally throughout the week - its longest winning run this year so far.
Unwinding of long-dollar positions by speculative traders and the currency's strong underlying fundamentals further supported the highly bullish move.
India is one of the emerging market economies - the fastest growing economy in the world with a GDP growth rate of 7.5 per cent - weathering the current global growth slowdown crisis the best among other countries.
After crashing to near historic low, rupee sentiment witnessed a sea change in the macroeconomic parameters on the government's commitment to its fiscal deficit target and also significant liberalisation of FDI norms in a host of sectors in its Budget proposals to push exports and attract more foreign investment.
Finance Minister Arun Jaitley maintained the fiscal deficit target for 2016-17 at 3.5 per cent of the GDP.
The domestic unit resumed a tad weak at 68.69 per dollar
However, rupee made a resounding recovery from its multi-year low in a spirited fashion powered by hopes of dollar inflows and maintained its strong momentum to end at a fresh 2-1/2 month high of 67.08, showing a solid gain of 154 paise or 2.24 per cent - its strongest close since 67.09 on December 14, 2015.
Globally, after last week gains, the dollar eased during the week as investors wagered that the Federal Reserve will slow the pace of its tightening cycle in the wake of better-than-expected non-farm payroll data, but fall was capped ahead of this month's FOMC rate decision.
The benchmark six-month forward dollar premium payable in July ended lower at 187-189 paise from preceding weekend's level of 194-196 paise and far-forward contracts maturing in January-2017 also moved down to 401-403 paise from 413-415 paise earlier.
Meanwhile, the new month spot/Aug and far-forward contract spot/Feb quoted at 225-227 paise and 430-432 paise, respectively.
The RBI fixed the reference rate for the dollar at 67.27 and the Euro at 73.66.
The rupee rose further against the pound to conclude at 94.89 from last Friday's level of 95.75 and also firmed up against the euro to settle at 73.67 from 75.59.
while linseeds oil maintains stable trend at the truncated Vashi oils and oilseeds wholesale market during the week under review.
Groundnut oil slipped owing to subdued demand from stockist and retailers amid ample supplies from producing regions.
Refined palmolein declined further due to reduced offtake from retailers.
In the non-edible, Castorseeds bold and castoroil commercial fell owing to reduced demand from shipper and soap industries.
Linseedoil continued its stable position due to lack of demand from paint and allied industries.
Oilseeds market remained closed on October 30, October 31 and November 1 for "Diwali" festival.
Refined palmolein resumed lower at Rs 565 and later drifted further to conclude at Rs 560 from last weekend's level of Rs 575 per 10 kg, showing loss of Rs 15 per 10 kg.
Among the non-edibles, castorseeds bold opened steady at Rs 3,775 and moved in a range of Rs 3,785 and Rs 3,770 before closing at Rs 3,755 as against last Friday's level of Rs 3,775 per 100 kg, showing a loss of Rs 20 per 100kg.
Castor oil commercial also resumed stable at Rs 785 and moved in a range of Rs 787 and Rs 784 before finishing at Rs 781 from last Friday's level of Rs 785, registered a loss of Rs 4 per 10 kg.
Forex: The rupee made further advances against the US
dollar, appreciating by 9 paise to end at 66.70 on sustained selling of the American currency by exporters and corporates amid global market turbulence.
Trading has been shallow and extremely thin during the week with a host of market participants preferred to stay on the sidelines due to renewed uncertainty over the potential outcome of the US presidential election and confusing signals from the US Federal Reserve.
Smooth dollar supplies following suspected RBI intervention through state-run banks predominantly helped the home currency to withstand initial volatility and outperform.
However, massive sell-off in domestic equities and subsequent unwinding of long market positions by FIIs restricted the rupee gains, a forex dealer said.
Excess volatility and movements of the US dollar in global trade also weighed on trade.
At the Interbank Foreign Exchange (Forex) market, the local unit resumed higher at 66.72 from last Friday's closing value of 66.79.
But later fell back sharply to hit a low of 66.8600 on dollar demand from importers and also tracking volatility in stocks before staging a solid rebound towards the fag-end despite the general sentiment surrounding the forthcoming US election, which kept investors nervous going into the weekend,
It finally settled at 66.70, revealing a gain of 9 paise, or 0.13 per cent after briefly climbing a high of 66.6750.
Marking the second straight week rise, rupee has made a good 19 paise move.
In cross-currency trades, rupee retreated sharply against the pound sterling to end at 83.30 from from last weekend's level of 80.99 and also tumbled against the Japanese yen to close at 65.21 from 63.43 per 100 yens.
In the meantime, country's foreign exchange reserves
improved further by USD 16.6 million to USD 367.157 billion for the week ended October 28.
FIIs remained sellers for the second straight week and offloaded shares worth USD 225.06 million as per Sebi's record.
In the forward market, premium for dollars showed a mixed trend due to lack of market moving factors.
The benchmark six-month forward dollar premium payable in April 2017 changed a little to 173.5-175.50 paise from 174.5-175.50 paise, while the far-forward contracts maturing in October edged higher to 349-351 paise from 347.5-348.5 paise last weekend.
RBI fixed the reference rate for the USD at Rs 66.72 and euro at Rs 74.05 against preceding week's level of Rs 66.85 and Rs 72.90, respectively.
In worldwide trade, the American dollar lost more ground and slumped to a fresh one-month low against all major emerging market currencies on nervousness ahead of next week's US presidential election even solid U.S. Jobs and macro data outcome failed to change the market expectations for a Federal Reserve rate hike next month.
Sentiment also turned shaky on the back of a sudden political uncertainty after a new poll indicated Donald Trump lead in the US presidential election, which spooked market participants.
The overall trade deficit declined by more than expected in September by $4.1 billion in September to a 19-month low of USD 36.4 billion.
The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, ended the week sharply down at 96.94 from 98.31 previously.
Meanwhile, pound sterling rebounded smartly to hit a four-month high after the High Court ruled that the U.K. government needs parliamentary approval to trigger Britain's exit from the European Union and the Bank of England stood pat on interest rates.
Crude prices remained weak on skepticism about whether OPEC members will adhere to planned production cut amid a steep rise in the US crude inventories.