Market falls 204 points for the week on global uncertainty
The market snapped three straight week gains, falling 203.56 points, but managed to hold the key 27K level at 27,034.50, while the broader Nifty fell below the psychological 8,400-level.
The market saw the past three weeks narrow- consolidative momentum breaking-down on Friday with sharp fall on caution ahead of US President elect Donald Trump's inauguration.
FIIs turnaround as net-buyers after concerns were much abated following government suspension of triple taxations circular, while GST Council break-through and consensus on its roll-out from July 1, was hindered by IMF's sharply lowing India's growth forecast, also negative third quarter results led by financials annoyed investors.
While, global concern over Donald Trump accession as US President office built up uncertainties over his priorities and policies also lent credence to the domestic market bearishness.
The Sensex dropped 203.56 points or 0.75 % to settle at 27,034.50. It hovered between 27,422.67 and 27,009.81 during the week.
The NSE Nifty 50 index also fell by 51 points or 0.61 % to settle at 8,349.35. It moved in a range of 8,460.30 and 8,340.95.
The sensex has gained 1,197.36 points on 4.60 % in previous three weeks. The CNX NSE Nifty also garnered 414.60 points or 5.19 % in last three weeks.
The selling was led by Oil&Gas, HealthCare, IT, Teck, PSUs, Metals, Capital Goods, Banks, Power, Auto, Realty sectors, while FMCG, IPOs and Consumer Durables witnessed buying interest.
Shares of midcap and small-cap were mixed with midcap index settling lower and smallcap gaining for the week.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 630.44 crore during the week, as per Sebi's record including the provisional figure of January 20.
In the broader market, the BSE Mid-Cap index shed 0.44 %, with the decline in this index lower than the Sensex's decline in percentage terms. The BSE Small-Cap index bucked the market trend by advancing 0.56 % during the week.
Among sectoral and industry indices, oil&gas fell by 1.33 %, followed by healthcare 1.30 %, IT 1.20 %, teck 1.09 %, metal 0.67 %, capital goods 0.63 %, bankex 0.54 %, power 0.24 %, auto 0.05 % and realty 0.01 %, while FMCG rose by 1.87 % and consumer durables by 0.88 %.
Among the 30-share Sensex pack, 18 stocks decline and remaining 12 stocks rose during the week.
Reliance Industries (RIL) tumbled 5.91 %. The company's consolidated net profit rose 3.6 % to Rs 7506 crore on 16.1 % increase in turnover to Rs 84189 crore in Q3 December 2016 over Q3 December 2015.
Axis Bank lost 4.75 %. The bank announced the cut in Marginal Cost of Funds based Lending Rates (MCLR) by 65-70 basis points across the various tenures from 18 January 2017.
However, it was followed by Coal India 3.51 %, Adani Ports 2.97 %, Infosys 2.70 %, M&M 2.10 %, Lupin 1.99 %, ONGC 1.79 %, Sun Pharma 1.59 % and Dr Reddy 1.58 %.
HUL was the biggest gainer in the sensex pack which rose to 4.00 %. It was followed by Asian Paints 3.53 %, ITC 2.38 %, Tata Steel 1.84, Gail 1.70 %, Tata Motors 1.65 % and TCS 1.57 %.
The total turnover during the week on BSE and NSE fell to Rs 14,989.40 crore and Rs 89,837.62 crore, respectively, as against last weekend's level of Rs 15,416.71 crore and Rs 90,767.97 crore.
Bullion: Both the precious metals, gold and silver maintained an upward trend for the fourth straight week at the bullion market, tracking a firming trend overseas amid wedding season buying by jewellers as well as retailers.
Traders said a firming trend overseas and increased buying by jewellers and retailers to meet ongoing wedding season demand mainly kept both gold and silver prices higher.
On a weekly basis, the yellow-metal prices regained the Rs.29,000-mark and gained 6.34 % or Rs 1,780, in four-weeks.
Silver followed suit on increased offtake by industrial units.
In worldwide trade, gold prices climbed, adding to a weekly gain their fourth in a row buoyed by weakness in the US dollar and uncertainty surrounding Donald Trump's presidency.
Gold was clobbered Thursday as the dollar gained on the combination of inaction on interest rates from the European Central Bank and relatively hawkish comments from Federal Reserve chief Janet Yellen this week.
Uncertainty surrounding the early presidency of Trump hovered over financial markets. Trump recently suggested he favored a weaker dollar.
Gold prices up 0.7 % for the week, while silver to settled at 1.6 % weekly gain.
In New York Comex trade, gold for delivery in February rose to finish at $1,204.90 an ounce as compared to last weekend's close of $1,196.20 and silver for March also climbed to settle at $17.032 an ounce from $16.765.
On the domestic front, standard gold (99.5 purity) resumed higher at Rs 29,020 per 10 grams from last Friday's closing level of Rs 28,890, later surged to a high of Rs 29,285 before closing at Rs 29,050, showing a smart rise of Rs 160 per 10 grams, or 0.55 %.
Similarly, pure gold (99.9 purity) also commenced higher at Rs 29,170 per 10 grams from previous weekends closing level Rs 29,040, later climbed to Rs 29,435 before finishing at Rs 29,200, revealing a gain of Rs 160 per 10 grams, or 0.55 %.
Silver ready (.999 fineness) opened positive at Rs 41,465 per kilo from its previous weekend level of Rs 41,255, later rising to a high of Rs 41,910, before ending at Rs 41,485, registering a rise of Rs 230 per kilo, or 0.56 %.