Mumbai: The benchmark BSE Sensex settled at a four-week high while NSE Nifty surged to near 8,400 levels this week on hopes of much-awaited sectoral reforms and encouraging manufacturing output data for December.
Only two-days of the week witnessed a tepid trading hindered by weak-sentiment over political uncertainty in Greece as well as liquidity drench following lack of major foreign funds inflow due to New Year holidays in most of the global market.
However, investors sentiments underpinned by optimism over the government growth oriented economic reforms, which was safeguarded by cabinet approval of taking ordinance route to acquire land in key sectors.
The two-day meet of banking industry to revitalise the financial sectors also provided support on the last day of week.
Also, a significant improvement in HSBC Manufacturing Purchasing Managers' Index (PMI) for December also provided a major push to stocks on the last trading day of the week.
FPIs turn-around from sellers to buyers further boosted the sentiment. They injected USD 101.91 million on the first four days of the week, as per Sebi data.
Shares from all sectors saw hectic buying, with capital goods, consumer durables, metals, power, banks, realty, auto, fmcg sectors leading the pack that was well supported by shares from mid-cap and small-cap companies which outperformed the sensex.
The BSE 30-share barometer resumed the week higher and gradually moved up further to a high of 27,937.47 before settling at four-week high of 27,887.90, showing a gain of 646.12 points or 2.37 percent.
Similary the wide-based 50-issue CNX Nifty of the NSE traded between 8,410.60 and 8,214.70 before ending the week at 8,395.45, a net gain of 194.75 points or 2.37 pct.
Pramit Brahmbhatt, Veracity Group CEO said, "Local equities added over two percent during the week with the help of some blue chips as recovery in the economy of United States cheered the global market and assisted local indices to post weekly gain. During the week FIIs also boosted the indices by being the net buyers of shares. Indices ended the week on a strong note."
27 scrips out of the 30-share sesnex pack ended higher while only three finished with losses.
Major gainers were BHEL (9.39 pct), SSLT (7.09 pct), Tata Motors (5.49 pct), Hindalco (5.19 pct), HDFC (5.18 pct), Axis Bank (3.87 pct), NTPC (3.70 pct), Icici bank (3.30 pct), Infosys (3.24 pct), Tata Steel (3.18 pct), Larsen (3.00 pct), Bharti Airtel (2.93 pct), Dr Reddy's Lab (2.80 pct), Tata Power (2.65 pct)and SBI (2.47 pct).
Buying was so strong that all 12 BSE S&P sectoral indices closed in the green on good buying by retail investors. CG flared up by 4.28 pct, CD 4.27 pct, Power 4.09 pct, Metal 3.82 pct, Teck 2.87 pct, Bankex 2.71 pct, IT 2.67 pct, Realty 2.47 pct, HC 2.16 pct and Auto 2.07 pct.
The BSE Midcap and the BSE Small-cap indices also jumped by 4.10 pct and 3.79 pct and did better than the Sensex.
The total turnover at BSE and NSE rose to Rs 11,892.08 crs and Rs 56,194.52 crs respectively from the last weekend's level of Rs 9,516.37 crs and Rs 55,320.37 crore.
Coming off from 13-month closing low of 63.79 logged due to heavy month-dollar demand from importers, mainly oil refiners, the rupee later bounced back to two-week high during the mid-week on dollar selling by exporters some some banks before falling back some ground to settle the week at 63.29 against Greenback -up by 28 paise, breaking straight three-week of decline.
The first week of the new calender year 2015 concluded on an optimistic note though on yearly basis it had lost 123 paise or 1.99 pct in calender year 2014. It had closed at 61.80 against the dollar in 2013 versus 63.03 in 2014.
Fresh dollar selling by exporters amid strong local equities and capital inflows mainly in domestic debt market also helped the rupee recovery.
Dollar index was firm against its most peers on hopes of early key interest rates hike by the US Federal Reserve on smart recovery in US economy. There was also buzz that the European Central Bank (ECB) is preparing to extend its stimulus measures.
In New York Thursday, the US dollar hit its highest level in nearly nine years against the basket of currencies.
Back home, the rupee resumed lower at the Interbank Foreign Exchange (Forex) market at 63.66 a dollar from last weekend's close of 63.75 and touched a 13-month low of 63.79 before rebounding sharply to a two-week high of 63.03. It later finished the week at 63.29, exhibiting a rise of 28 paise or 0.44 pct. In last three week, it had plunged by 180 paise or 2.91 pct.
The Indian benchmark S&P BSE Sensex spurted by 646.12 points or 2.37 pct to end at four-week high of 27,887.90 while FPIs infused USD 101.91 mln during the first four days of the week, as per Sebi data.
Meanwhile, reflecting tight financial position of the central government, fiscal deficit at Rs 5.25 lakh crore as of November-end almost touched 99 percent of the full year target of Rs 5.31 lakh crore.
The government data showed the growth rate of eight core sector industries rose to five-month high of 6.7 percent in November on the back of better output in coal, refinery products, electricity and cement.
In the forward market, premia closed mixed.
The benchmark six-month forward dollar premium payable in June softened to 226-228 paise from 227.5-229.5 paise last weekend while far-forward contracts maturing in December 2015 rose to 433-435 paise from 427-429 paise.
The RBI fixed the reference rate for the US dollar at 63.2878 and the euro at 76.3061 from 63.6355 and 77.7435 last weekend respectively.
The rupee also recouped sharply to 97.65 against the pound sterling from 98.93 preceding weekend while improved further against the euro to 76.25 from 77.48.
Against the Japanese currency, however, it strengthened to 52.52 per 100 yen from 52.85 previous weekend.
