Mumbai: Confidence echoed in domestic market sentiment for the second week in a row as heavy capital inflows, easing crude oil prices, strengthening rupee along with positive global cues led the BSE Sensex to end the week at near record-high and NSE to close at life-time high.
The week opened with investors cheering the Prime Minister's encouraging Independence Day speech which talked about making India the hub of manufacturing sector with a focus on improving infrastructure.
Later, market started to consolidate near its all-time peak, despite some correction in mid-week.
Continued foreign institutional investors (FII) buying amid encouraging US economic data resulting into positive global cues along with good retail investors participation also lifted the market sentiment.
The BSE S&P Sensex resumed higher and marked life time high of 26,530.67 before closing the week slightly lower at 26,419.55, still showing a gain of 316.32 points or 1.21 per cent.
In straight two weeks, it has zoomed 1,090.41 points or 4.30 per cent. The NSE 50-share Nifty gained 121.50 points, or 1.56 per cent to log its record closing high of 7,913.20. It registered an intra-day new peak of 7,929.05.
Barring FMCG sector, the market saw broad-based buying as rest other 11 sectoral indices closed with gains led by consumer durables, healthcare, banking, auto, capital goods, PSUs, power and oil & gas shares.
Shares from mid-cap and small-cap companies also saw extensive buying from retail investors and outperformed the Sensex.
The S&P BSE small-cap and mid-cap indices closed strong by 4.83 per cent and 3.70 per cent.
The Indian rupee continued its north-bound journey for the third week in a row, appreciating by 29 paise to close the shortened week at more-than three-week high of 60.47 against the Greenback on record breaking local equities amid sustained foreign portfolio investments.
The Forex market was closed on Monday, August 18, 2014, on account of "Parsi New Year". Despite firm dollar overseas, continued dollar selling by exporters and some banks also aided the rupee rally.
The rupee was seen gaining against the USD after Standard & Poor's said efforts to cut the budget deficit are positive for the country's credit rating, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced the week a tad lower at 60.77 a dollar from last weekend's close of 60.76 and touched a low of 60.88 on Tuesday as dollar index hit the 11-month high, trading above $82 — highest since September last week- against its major global rivals following the gradual strengthening of the US economic outlook.
Gold suffered a major setback during the week and ended below the psychologically-significant Rs28,000 per 10 grams level on reduced stockists demand as well as weak investment offtake in the wave of heightened global uncertainty.
The metal remained under intense selling pressure through out the week as jewellery traders and retail investors preferred to stay aside. Firm rupee sentiment and record breaking rally in equities alongside sharp volatility in overseas trade further dampened investor's appetite towards the yellow metal.
Industrial metal, silver, encountered the worst glitch and plunged sharply to multi-month low owing to frantic selling from speculative traders. It ended below the key Rs43,000 per kilo mark.
On the global front, the shiny metal skidded drastically to hit a two-month low and finished below the psychological important $1,300 an ounce mark following heavy offloading by Gold-ETFs as upbeat US macroeconomic sentiment continued to pressurise amid fading safe-haven demand.
Easing geo-political tensions and stronger dollar value against the backdrop of Federal Reserve's last policy minutes reiterated concerns of interest rates hikes earlier than expected also prompted market players to stay away from precious metal.