Mumbai: Continuing their rallies, the BSE Sensex and the CNX Nifty set new records during the week under review and closed at new closing highs of 28,693.99 and 8,588.25 respectively on sustained foreign fund inflows amid falling crude prices.
Global crude oil prices dropped to USD 72/barrel, the lowest level since August 2010. Falling oil price is good news for India, which imports 80 percent of its requirements. This will also help the country narrow its Current Account Deficit as well as fiscal deficit.
Interest rates related shares from realty, banking and auto were in keen demand on hopes of rates cut.
IT, Metal and Power sectors too attracted good buying support.
The benchmark Sensex resumed higher at 28,413.01 and shot up further to intra-day life-time high of 28,822.37 before logging its new closing high of 28,693.99, a gain of 359.36 points or 1.27 pct during the week. It has gained by 2,585.46 points or 9.90 pct in six consecutive weeks.
The CNX 50-share Nifty also rose by 110.90 points or 1.31 pct to register its new closing peak of 8,588.25 after touching an intra-trade all-time high of 8,617.00. It gained 808.55 points or 10.39 pct in six straight weeks.
"Sentiments were buoyed by OPEC's decision to sustain production levels and the subsequent sharp fall in crude prices. Markets are hoping for a rate cut in the RBI policy meeting next week," said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
Hopes of big-bang reforms in the ongoing winter session and growing expectations of more stimulus measures from China and Europe also boosted the market sentiment.
Sustained capital inflows also was the another factor behind rise in the share values as FPIs/FIIs continued their buying spree as they invested Rs 3,641.83 crs during the week.
Realty counters were at the forefront after Floor Area Ratio in Delhi in respect of plots of 750?1000 sq mt size were enhanced from the present 150 percent to 200 percent while the same has been increased from 120 percent to 200 percent for plots of 1000 sq mt and above.
As a result, sectoral S&P BSE Realty index was the top gainer with a rise of 3.56 percent.
Major gainers from the sensex pack were Hindalco (8.59 pct), M&M (6.20 pct), Tata Steel (6.07 pct), Tata Power (5.56 pct), SBI (5.38 pct), Infosys (5.14 pct), HUL (4.31 pct), Hero Motocorp (3.77 pct), HDFC Bank (2.67 pct), Gail India (2.56 pct), HDFC (2.34 pct), Dr Reddy's Lab (2.04 pct) Coal India (2.20 pct) and Wipro (2.16 pct).
Other gainers from the S&P BSE sectoral indices were IT 2.60 pct, Bankex 2.56 pct, Metal 1.61 pct, Auto 1.56 pct, Power 1.54 pct and Teck 1.39 pct.
The total turnover at BSE and NSE rose to Rs 20,862.31 crs and Rs 96,919.64 crs respectively during the week as against the last weekend's level of Rs 17,604.23 crs and Rs 86,603.23 crs.
The Indian rupee continued to decline against the American currency for the 5th consecutive week, slipping by another 27 paise to register its nine-month closing low of 62.03 per dollar on heavy month-end dollar demand from banks and importers amidst sustained foreign capital inflows into record breaking equity market.
The rupee opened slightly higher at 61.7450 per dollar as against the last weekend level of 61.76 at the Interbank Foreign Exchange (Forex) Market and moved up further to 61.65 on initial selling of dollars by banks and exporters on persistent capital inflows.
However, it failed to maintain initial gains and fell back to a low of 62.0725 before logging its nine-month closing low of 62.03 per dollar on month-end dollar demand from importers, showing a loss of 27 paise or 0.44 percent. Last time, it had settled at 62.4 on March 3, 2014.
It has dropped by 76 paise or 1.24 percent in the during the five weeks.
The benchmark S&P BSE 30-share Sensex closed up by 359.36 points or 1.27 pct to a new peak while FPIs/FIIs bought shares worth USD 437.32 mln on the first four days of the week, as per Sebi data.
Mr. Pramit Brahmbhatt, Veracity Group CEO said," Rupee depreciated against the US Dollars following month end dollar demand from oil importers which dented the movement of Rupee and forced it to trade almost nine month low. However, local equities traded strong throughout the week and posted new all time high tried to support Rupee".
"Recommended to be cautious and Sell USDINR (Futures) on rise with appropriate stop loss as overall Rupee is expected to appreciate," he added.
In the forward market, premium dollar dropped further on sustained receiving by exporters.
The benchmark six-month forward dollar premium payable in April plunged to 190-192 paise from preceding weekend's close of 205.5-207.5 and far-forward contracts maturing in October 2015 also stumbled to 402-404 paise from 428.5-430.5 paise.
The RBI fixed the reference rate for the US dollar at 61.9736 and the euro at 77.1633 from 61.8505 and 77.6224 last weekend respectively.
The rupee reacted downwards against the pound sterling to end the week at 97.34 from 96.73 last weekend and also fell back to 52.48 per 100 Japanese yen from 52.37.
It, however, remained weak to settle at 77.29 per euro from 76.72 last weekend.
