Markets halt two-week decline; Sensex, Nifty gain nearly 2%

Mumbai: Witnessing their strongest weekly gains in over two months, both the benchmark indices -- Sensex and Nifty -- rose nearly 2 percent to finish at 25,519.22 and 7,761.95, respectively.

The gains were sustained due to stable currency, improved domestic macro factors and sliding crude which foiled the ripple effect of the much-awaited US Federal Reserve interest rate hike announcement during the week.

Most of the week's trading momentum was marked by soothing domestic macro data led by surging industrial production figures (IIP), while rallying European stocks amid Fed rate hike assuaged by dovish comments from its chief Janet Yellen, helped the market gain.

Besides, value buying amid slight rebound in crude oil prices supported the market.

The reassuring statements from Finance Minister Arun Jaitley that the proposed Goods and Services Tax (GST) rate would be less than 18 percent and on likely scrapping of 1 percent additional tax, lifted the corporate sentiment.

Additionally, metal stocks gained on imposition of anti-dumping duty of up to 57.39 percent by the government.

Fitch Ratings' statement that India is not immune to potential market jitters following an interest rate hike by the US Fed, but favourable growth outlook makes it attractive for foreign investors, also boosted the momentum.

The Sensex resumed lower at 24,935.60 and hovered between a high of 25,831.31 and a low of 24,867.73 before finishing
the week at 25,519.22, showing a gain of 474.79 points, or 1.90 percent.

The 50-share NSE Nifty also gained 151.50 points, or 1.99 percent, to 7,761.95.

Across the spectrum buying was witnessed in metal, power, realty, healthcare, oil & gas, consumer durable, technology, auto, IT, banks, capital goods and FMCG sectors.

The second line midcap and smallcap shares also ended with good buying activity.

Foreign portfolio investors (FPIs) bought shares worth Rs 242.94 crore during the week as per the Sebi's record, including the provisional figure of December 18.

The BSE small-cap and mid-cap indices rose by 2.84 percent and 3.25 percent, respectively. Both these outperformed the Sensex.

Among the 30-share Sensex pack, 25 stocks rose and the rest five stocks declined in the week ended.

Major gainer from the Sensex pack was Tata Steel (6.00 percent) followed by Hero Motoco (4.69 percent), Hindalco (4.72 percent), Hindunilever (4.65 percent), Sun Pharma (4.27 percent), HDFC (4.18 percent), Reliance (4.18 percent), ONGC (3.60 percent), Infosys (3.19 percent) and Bharti Airtel (3.17 percent).

However, Wipro lost by 2.05 percent followed by M&M by 1.73 percent, Axis Bank by 1.68 percent, ITC by 1.14 percent and SBI by 0.20 percent.

Among the S&P BSE sectoral indices, Power rose by 4.24 percent, Metal by 4.07 percent, Realty by 3.11 percent, Healthcare by 2.36 percent, Oil&Gas by 2.32 percent, Teck by 2.03 percent, Auto by 1.84 percent, IT by 1.83 percent, Bankex by 1.51, Capital Goods by 1.33 percent and FMCG by 0.94 percent.

The total turnover during the week on the BSE fell to Rs 14,007.51 crore from last weekend's level of Rs 14,350.77 crore while NSE rose to Rs 77,988.20 crore from Rs 72,952.91 crore.