Market zooms 848 points for the week ahead of Union Budget

The market rebounded sharply, marking highest gains not seen since eight months for the week as the benchmark Sensex garnered 847.96 points to 27,882.46, while the broader Nifty finished well above the key 8,600-level.

The holiday-truncated expiry week saw the poised action by bulls taking control over the market momentum, with investor eyeing next week's budget, defied the negative corporate results in some of the key index heavy-weights, while the market gained strength, enfolding a pre-budget rally.

The global market also lend support to the domestic sentiment with US wall-street hitting fresh all-time record highs of 20,000-mark, it was further aided by massive buying by FIIs showing renewed interest of Indian equities.

Also the January derivative expiry saw the strong roll-overs to February series as investors opted for longs amid tinge of shortcovering, eyeing Union Budget on hopes of business friendly measures.

Sensex jumped 847.96 points or 3.14 % to settle at 27,882.46. It hovered between 27,980.39 and 26,963.58 during the week. The Sensex lost 203.56 points 0.75 % last week.

NSE Nifty 50 index also rallied by 291.90 points or 3.50 % to settle at 8,641.25. It moved in a range of 8,672.70 and 8,319.50. Nifty fell 51 points or 0.61 % previous week.

The market was closed on thursday, 26th January for 'Republic Day' holiday.

Across the spectrum buying was led by Consumer Durable, PSUs, Oil&Gas, Bankex, Auto, IPOs, Power, Realty, Teck, HealthCare, FMCG, IT and Capital Goods.

The broader midcap and smallcap companies shares also put-up steller show. 

Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 1,294.27 crore during the week, as per Sebi's record including the provisional figure of January 27.

In the broader market, the BSE Mid-Cap index rose 3.02 % and the BSE Small-Cap index advanced 2.75 %. Both these indices underperformed the Sensex.

Among sectoral and industry indices, Metal rose by 5.93 %, followed by consumer durables 5.55 %, PSU 5.46 %, Oil&Gas 4.86 %, Banking 4.76 %, Auto 4.47 %, IPO 3.75 %, Power 3.72 %, Realty 2.15 % and Teck 1.08 %.

Among the 30-share Sensex pack, 25 stocks advanced and remaining 5 stocks fell during the week.

Key benchmark indices posted strong gains led by Index heavyweights HDFC rose by 10.72 % followed by Adaniports 6.73 %, SBIN 6.18 %, Tata Motors 4.05 %, Bajaj Auto 5.51 %, M&M 5.03 %, Axis bank 4.94 %, GAIL 4.87 %, Hero Motoco 5.21 %, HDFC Bank 4.64 % and Tata Steel 3.22 %.

While, Wipro lost 2.35 % the stock was the biggest loser from the Sensex pack followed by Infosys 0.70 % and Reliance 0.05 %.

The total turnover during the week on BSE eased to 14,237.93, While NSE rose to Rs 92,475.26 crore, respectively, as against last weekend's level of Rs 14,989.40 crore and Rs 89,837.62 crore. 

Bullion: Both the precious metals, gold and silver slipped and succumbed to fresh bouts of profit-taking at the domestic bullion market bringing an abrupt end to a straight four-weeks gain.
Subdued demand from jewellery traders at current levels and a smart recovery in local equities further dampened the yellow metal, sliding below the key psychological Rs 28,000-mark amidst bearish global cues.

"Gold demand improved this week, boosted by a fall in prices overseas, though some consumers are waiting in the hope that import duty will be cut in the government's budget next week," a dealer said.

Elsewhere, silver also witnessed heavy unwinding by speculative stockists and traders to end below the Rs 40,000- level last seen at January 10, 2017.

In worldwide trade, Gold futures ended lower yesterday for the fourth day in a row, losing more than 1 % for the week as strength in the dollar and recent all-time highs in major US stock indexes weakened demand for so-called safe-haven investments.

"Gold found itself exposed to painful losses this week after the renewed investor risk appetite from the Trump effect and dollar's resurgence encouraged sellers to attack the metal incessantly," a dealer said.

Gold for February delivery fell $ 1.40 yesterday, to settle at $ 1,188.40 an ounce settled roughly 1.4 % lower for the week.

Gold has posted declines each day since ending Monday at $ 1,215.60, its highest settlement since November 17.

While, March silver climbed by 28.60 cents, to $ 17.136 an ounce, erasing its weekly loss. It was up about 0.6 % from last Friday's settlement of $ 17.032 per ounce. 

In New York Comex trade, gold for delivery in February fell at $ 1,188.40 an ounce as compared to last weekend's close of $ 1,204.90, however silver for March also rose to settle at $ 17.136 an ounce from $ 17.032.

On the domestic front, standard gold (99.5 purity) resumed higher at Rs 29,225 per 10 grams from last Friday's closing level of Rs 29,050, later moved in a range of Rs 29,310 and Rs 28,725 before closing at Rs 28,705, showing a fall of Rs 345 per 10 grams, or 1.19 %.

Similarly, pure gold (99.9 purity) also commenced higher at Rs 29,375 per 10 grams from previous weekend's level of Rs 29,200 and later hovered in a range of Rs 29,460 and Rs 28,875 before finishing at Rs 28,855, revealing a loss of Rs 345 per 10 grams, or 1.18 %.

Silver ready (.999 fineness) opened positive at Rs 41,950 per kilo from its previous weekend level of Rs 41,485, and later drifted to a low of 41,410 before ending at Rs 40,890, registering a loss of Rs 595 per kilo, or 1.43 pct.

Bullion market remained closed on 26, Jan. 2017 for "Republic Day" holiday.