Market Review: Sensex regains 28,000-mark, gains 404 points for the week

Stocks were broadly higher during the volatile week as the BSE benchmark Sensex reclaimed the psychological 28,000-level by gaining 403.58 points and Nifty finished well above the key 8,600-level.

The positive opening of the week was wobbled by global nervousness over fresh US Fed rate hike fears before year-end, faltering the key indices to three month-low.

It was soon to be thwarted by global recovery amid unexpected fall in the US manufacturing index, while three-day GST council meet charged up the sentiment as stocks rebounded biggest single day gain in five months amid hectic short- covering dominating the momentum.

The final phase of the US Presidential debate outcome, ECB monetary policy status-quo and some of quarterly earnings results provided support to the market. But, uncertainty returned amid global volatility after surge in the US dollar index rekindled the fresh fears of the US rate hike this year.

Also, the domestic petro-giant Reliance Industries saw 23% drop in its second quarter consolidated net profit which further pressured trading sentiment during the weekend trade.

The BSE benchmark Sensex resumed higher at 27,776.14 and hovered between 28,212.50 and 27,488.30 before closing the week at 28,077.18, showing a gain of 403.58 points or 1.46%.

The NSE Nifty also garnered 109.65 points or 1.28% to end the week at 8,693.05.

Buying was led by bankex, IPO, IT, PSUs, power, technology, metal, capital goods, realty, healthcare, FMCG and oil and gas sectors well supported by second line shares of mid-cap and small-cap companies. Selling was witnessed in auto and consumer durable counters. 

Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 73.06 crore during the week, as per Sebi's record including the provisional figure of October 21.

In the broader market, the BSE mid-cap index rose 182.76 points or 1.36% to settle at 13,602.38, under performing the Sensex. The BSE small-cap index rose 255.45 points or 1.94% to settle at 13,432.21, outperforming the Sensex.

Among sectoral and industry indices, bankex rose 4.00%, followed by IT 1.94%, power 1.80%, technology 1.64%, metal 1.53%, capital goods 1.39%, realty 1.1%, healthcare 1.15%, FMCG 0.59% and oil and gas to 0.48%.

However, consumer durables fell by 0.23% and auto by 1.37%. Among the 30-share Sensex, 21 rose, 9 shares fell during the week.

Private sector lender ICICI Bank was the top Sensex gainer last week. The stock surged 14.82% to Rs 277.70 after media reports suggested that the debt-laden company, Essar Oil, agreed to sell an oil unit to a consortium led by Russia's Rosneft. ICICI Bank is amongst the major lenders to Essar Group. Exposure to Essar Group expressed as a% of respective bank's loan book is highest for ICICI Bank, Axis Bank, Punjab National Bank and State Bank of India, as per reports.

It was followed by private port operator Adani Ports and Special Economic Zone surged 12.28% to Rs 285.70.

Wipro 5.21%, Tata Steel 3.74%, NTPC 3.14%, TCS 2.65%, Dr Reddy's 2.63%, L&T 2.58% and SBI 2.58%.

Asian Paints was the biggest loser in the Sensex pack last week. The stock fell 4.50% to Rs 1,153.50. It was followed by Hero Motocorp 3.49%, M&M 2.21% and Tata Motors 1.96%.

The total turnover during the week on BSE and NSE rose to Rs 18,170.07 crore and Rs 1,06,661.62 crore, respectively, as against last weekend's level of Rs 9,870.75 crore and Rs 59,232.39 crore. 

Snapping a three-week losing streak, gold bounced back dramatically at the bullion market here on the emergence of buying from jewellery stockists and retailers ahead of the festive season.

Demand from India is expected to remain elevated as festivals, including Dhanteras and Diwali, will be celebrated at the end of the month a time when gold is traditionally given as a gift.

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, the 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 5.36% in its past three-week downslide. However, silver eased for the week, following speculative selling.

In worldwide trade, gold futures finished a few cents higher to tally a gain of roughly 1% for the week.

The US dollar strength after ECB monetary policy status-quo, uncertainty surrounding the outcome of the US election and the timing of Federal Reserve's next interest- rate hike helped to lift investment interest in the yellow metal. 

In New York Comex trade, gold for delivery in December rose to finish at USD 1,267.70 an ounce as compared to last weekend's close of USD 1,255.50 and silver for December also climbed to settle at USD 17.493 an ounce from $17.441.

On the domestic front, standard gold (99.5 purity) commenced steady at Rs 29,750 per 10 grams, later surged to a high of Rs 30,045 before closing at Rs 29,990, showing a smart rise of Rs 240 per 10 grams, or 0.80%.

Similarly, pure gold (99.9 purity) also opened stable at Rs 29,900 per 10 grams, later climbed to Rs 30,195 before finishing at Rs 30,140, revealing a gain of Rs 240 per 10 grams, or 0.80%.

Silver ready (.999 fineness) opened negative at Rs 42,660 per kilo from its previous weekend level of Rs 45,680, later rising to a high of Rs 43,065, before ending at Rs 42,640, registering a mild loss of Rs 40 per kilo, or 0.09%.