Markets ended in red for the second consecutive week as the S&P BSE benchmark Sensex and NSE Nifty fell by two per cent each to 3-week low at 24,673.84 and 7,555.20 in view of profit-booking in tandem with global stocks following uncertainty regarding the quantum and timing of interest rate hikes in the United States.
Fresh foreign capital outflows also affected the market sentiment. FPI and FIIs sold shares net Rs 859.87 crore during the week as per the SEBI's data including the provisional figure of April 8.
The Sensex resumed higher at 25,333.98 and firmed up to 25,424.15 on Monday ahead of the Reserve Bank of India's rate cut. However, it dropped to 24,608.51 as key policy rate cut of 0.25 per cent from RBI failed to induce investors before finishing the week at 3-week low at 24,673.84, showing a loss of 595.80 points or 2.36 per cent.
It has dropped by 663.72 or 2.62 per cent in two weeks.
The NSE 50-share Nifty also dropped by 157.85 points or 2.05 per cent to 7,555.20. It has also tumbled by 161.30 points or 2.09 per cent in two weeks.
Meanwhile, private sector manufacturing and services activities surged to a 37-month high in March on new business orders even as job growth remained sluggish, a monthly survey showed.
Foreign investors turned neutral and started selling in small quantities led by muted expectations of fourth quarter results.
Shares of banking, Auto, FMCG, IT, Consumer Durable, Capital Goods, Teck and Realty sectors fell due to heavy selling pressure.
In the broader market, the BSE mid-cap index fell by 48.06
points or 0.45 pct to settle at 10,594.26.
However, the BSE small-cap index rose by 24.62 points or 0.23 pct to settle at 10,664.46, outperforming the Sensex.
Among the S&P, BSE sector and industry indices, Banking fell by 4.07 per cent, Auto 2.35 per cent, FMGC 2.15 per cent, IT 1.85 per cent, Consumer Durables 1.85 per cent, Teck 1.76 per cent, Consumer goods 1.74 per cent, and Realty 1.71 per cent.
While, Healthcare rose by 0.71 per cent followed by Power 0.63 per cent and oil & gas 0.57 per cent.
In the 30-share Sensex pack, 23 stocks declined and the remaining 7 gained during the week.
Among major losers, Adaniport lost (9.80 pc), Maruti (7.91 pc), ICICI Bank (7.21 pc), SBIN (6.44 pc) Axis Bank (6.24 pc), ITC (4.36 pc), Larsen (3.85 pc), HDFC (2.92 pc), Wipro (2.60 pc) Coal India (2.54 pc), Asian Paints (2.13 pc), Tata Motors (1.94 pc), Cipla (1.54 pc), ONGC (1.29 pc), Hero Motoco (1.17 pc), TCS (1.09 pc) and HDFC Bank (0.57 pc).
However, Lupin rose by 5.14 per cent, followed by BHEL 4.75 per cent, M & M 3.23 per cent, Dr Reddy 1.87 per cent, Tata Steel 1.43 per cent and NTPC 1.23 per cent.
The total turnover at BSE and NSE fell to Rs 12,034.70 crore and Rs 73,075.11 crore, respectively, as against the last weekend's level of Rs 13,792.46 crore and Rs 96,668.10 crore.
Forex: The rupee failed to maintain last week gains
against the American currency, slipping by 21 paise to end the week at 66.47 per dollar on fag-end dollar demand from banks and importers in view of fresh foreign capital outflows amid fall in equity market.
The rupee resumed lower at 66.30 per dollar as against the last weekend's level of 66.26 per dollar at the Interbank Foreign Exchange (Forex) market and dropped further to 66.73 per dollar on initial dollar demand from banks and importers.
However, it recovered afterwards to more than 3-month high at 66.07 per dollar on selling of dollars by some banks and exporters in view of weakness of dollar in the overseas market before ending the week at 66.47 per dollar, showing a loss of 21 paise or 0.32 per cent.
The domestic currency had gained by 38 paise or 0.57 per cent in the last week.
In the global market, the dollar touched nearly 18-month low against the Japanese currency as investors continued to be confident that Tokyo will not intervene in the market.
Meanwhile, Finance Minister Arun Jaitley said that the rupee does not face any "serious challenge" of depreciation and will find its own level after initial bouts of volatility.
His comments have come against the background of Barclays forecasting the rupee to drop to an unprecedented 69 a dollar by June 30 and weaken further to 70.50 by September 30 and end the year at 71.50 a dollar.
However, RBI Governor Raghuram Rajan said that a move towards an inflation target of 4 per cent will help contain the currency market volatility.
The dollar has crumbled 10.2 per cent against the yen
since the beginning of the year as fears about global growth drove investors into haven assets like the yen, gold and US sovereign debt. The fact that the yen has remained buoyant even as risk assets like stocks have climbed off their yearly lows suggests investors remain wary of another selloff.
Back home, in forward market, premium for dollar dropped further on persistent receiving from exporters.
The benchmark six-month forward dollar premium payable in September fell to 198-200 paise from the last weekend's level of 210-212 paise and far-forward contracts maturing in March also declined to 392-394 paise from 407-409 paise previously.
The RBI fixed the reference rate for the dollar at 66.4698 and the euro at 75.8952, as against the last weekend's level of 66.3329 and 75.0955, respectively.
The rupee rebounded against the pound to end at 93.81 from the last weekend's level of 95.50. However, it moved down further against the euro to close at 75.81 from 75.40.
The domestic unit slipped against the Japanese unit to finish at 61.35 per 100 yens from 59.02 last weekend's level.
The Forex market was closed on April 8, 2016 on account of "Gudi Padwa".
Oils and Oilseeds: Edible oils and castorseeds surged,
during the truncated week, while linseedoil eased at the wholesale oils and oilseeds market under review.
Groundnut oil continued its rising trend on sustained demand from stockists and retailers due to festive offtake amid restricted arrivals from producing regions.
Refined palmolein also firmed-up despite volatility owing good buying from retailers.
Castorseeds bold and castor oil commercial rallied further on heavy demand from shippers and soap manufacturing units.
However, linseeds moved down due to lower offtake from paint and allied industries.
The oilseeds market was closed on 8th April (Friday) on account of 'Gudi-Padava'.
Groundnut oil opened sharply higher at Rs 1,120 and ruled at the same level before slipping to close at Rs 1,110 as compared to last Saturday's closing level of Rs 1,090, still revealing a gain of Rs 20 per 10 kg.
Refined palmolein also resumed higher at Rs 598 and gained a high of Rs 605 before easing to finish at Rs 600, showing a rise of Rs 7 per 10 kg.
Turning to non-edible section, castorseeds bold commenced higher at Rs 3,130 and continued its rally to conclude at Rs 3,290 as against last weekend's close of Rs 3,120, reaping a sharp gain of Rs 170 per 100 kg.
Similarly, castor oil commercial resumed higher at Rs 656 and advanced further to end at Rs 688 as compared to previous weekend's level of Rs 654, showing a good gain of Rs 34 per 10 kg.
Linseed oil prices opened stable at Rs 875, later moved down to finish at Rs 870 from last Saturday's level of Rs 875 per 10 kg, showing a decline of Rs 5.
Bullion: Snapping a four-week retreat, gold bounced back
dramatically at the bullion market here on emergence of frantic buying from jewellery stockists and retailers ahead of a busy festival and wedding season.
The domestic sentiment glittered after a strong wave of buying swept across overseas markets after the Federal Reserve minutes showed caution among policy makers regarding raising interest rates, triggering renewed buying interest.
Moreover, the recent sharp correction in gold prices attracted huge buying opportunity for speculators to take long positions backed by increased offtake from retail consumers as well as wedding-related demand.
Despite a subdued start, precious metal staged a strong comeback during the mid-week trade and maintained the rising momentum till the fag-end trade.
The yellow-metal had lost a whopping 3.37 per cent in the past four-week downslide.
Elsewhere, silver remained under immense selling pressure due to consistent unwinding from traders as well as lower demand from consuming industries.
In worldwide trade, the shiny-metal strengthened further after the minutes of the March FOMC meeting confirmed the more dovish stance adopted by the US Federal Reserve amid rising financial market volatility.
A weaker dollar also provided much needed support.
In contrast, the industrial metal declined further owing to poor demand. It skidded the key significant USD 15 an ounce mark briefly before regaining some lost ground.
