Market posts third weekly gain in a row, up by 135 points

Mumbai: The Indian markets managed to post its third consecutive weekly gain, treading waters amid lacklustre bluechips earning numbers and largely unexciting economic data led both the BSE Sensex end above the key 27,000-levels and the broader Nifty above 8,200-mark. Dealing in IT segments ruled the roost during the weeks mostly range-bound trade, with the IT major Infosys notable September quarter net profit imperiled by disappointing lower revenue forecast, while the IT service major TCS dull Q2 number added selling pressure on software stocks throughout the week.

The momentum was further jeopardized by rising September CPI inflation data, thinning exports due to global slowdown pressure along with weak Chinese economic data, though the market players shrugged of the strong macro indicator of IIP data of nearly three year highs. Equities turn-around witnessed from the fourth session of the week amid firm global rally with weak US economic data further optimized the delay in Federal Reserve raising of its key interest rates this year, as the buying in heavy weights like Tata Motors which gained after its Jaguar Land Rover unit reported a 3 per cent rise in September sales as well as fundamentally strong stocks led the key indices to recapture its psychological-levels.

The Sensex resumed higher at 27,242.60 and hovered between a high of 27,305.04 and a low of 26,713.28 before closing at 27,214.60, showing a gain of 135.09 points or 0.50 per cent. It has gained 1,351.10 points or 5.22 per cent in three weeks. The CNX 50-share Nifty also moved-up 48.45 points, or 0.50 per cent, to 8,238.15. It has also gained 369.65 points of 4.70 per cent in three weeks. Buying was mainly seen in Capital Goods, Auto, Oil & Gas, Power, Metal, Banks, Consumer Durables and PSUs also supported by shares of mid-cap and small-cap shares. However, selling was led by IT, Tech, HealthCare and FMCG counters.  

Forex: 

In a volatile market, the Indian rupee snapped its last 2-week winning spree against the American currency by ending lower by seven paise at 64.81 per dollar on some dollar demand from banks and importers. Persistent foreign capital inflows in view of strong equity market restricted the rupee's loss against the dollar, a forex dealer said. Foreign portfolio investors (FPIs) pumped in USD 184.82 millions during the first four days of the week, as per SEBI's record.

The rupee resumed lower at 64.82 per dollar as against the last weekend's level of 64.74 per dollar at the Interbank Foreign Exchange (Forex) market and dropped further to 65.19 per dollar on strong dollar demand from importers. However, it trimmed its losses at the fag-end of the week to close at 64.81 per dollar, still showing a marginal loss of seven paise or 0.11 per cent. The domestic currency had gained by 142 paise or 2.15 per cent in the previous two weeks.

It moved in a range of 64.6900 and 65.19 per dollar during the week. In the global market, the U.S. dollar finished the week essentially flat against the euro on Friday after depreciating earlier in the week as investors braced for an expansion of the European Central Bank’s stimulus program. A raft of weak U.S. data including a disappointing September retail-sales report released Tuesday have firmed expectations that the Federal Reserve will wait until next year to raise interest rates, which has in turn driven the dollar lower.  

The dollar weakened after the disappointing data and two Federal Reserve policy makers said they would like to wait before raising interest rates. Forward dollar premium payable in March slipped to 189-191 from last weekend's level of 199-201 paise on receipts from exporters and far-forward contracts maturing in September 2016 ended lower at 403-405 paise as against 414.5-416.5 paise previously. The RBI fixed the reference rate for the dollar and euro at 64.9697 and 73.9940, respectively from the last weekend's level of 64.7848 and 73.0837.

The rupee declined against the pound to end the week at 100.16 from the last weekend's level of 99.34 and also fell against the euro to 73.60 from 73.56. The domestic unit however, gained further against the Japanese currency to finish at 54.45 per 100 yen from the last weekend's level of 53.59.