Market extends gain on widespread buying but rupee takes a fall

The Indian market posted strong gains to end higher for the second consecutive week supported by positive domestic macro data, sustained buying from domestic investors and hopes of a rate pause by the US Federal Reserve in the upcoming meeting. The participants, for now, seem to have taken in their stride inflation worries arising out of deficit monsoon rains and rising crude oil prices.

In the week ended September 8, the Sensex added 1.85 percent or 1,211.75 points to close at 66,598.91 and Nifty50 rose 1.97 percent or 384.7 points to close at 19,820.

The BSE midcap index gained 4 percent, with Power Finance Corporation, IDBI Bank, Petronet LNG, Schaeffler India, REC, Adani Power, JSW Energy, Bayer CropScience and Tube Investments of India rising 10-18 percent.

The BSE smallcap index rose 2.2 percent. MMTC, GTL Infrastructure, National Peroxide, Cochin Shipyard, Bombay Burmah Trading Corporation, Magadh Sugar & Energy, GMR Power, SpiceJet, Vikas WSP, Ashapura Minechem, Transformers and Rectifiers India and Sadhana Nitrochem gained 21-50 percent.

The BSE largecap index rose 2 percent, led by gains in Coal India, FSN E-Commerce Ventures (Nykaa), Shree Cements, Larsen & Toubro, DLF and HCL Technologies.

In terms of market value, HDFC Bank added the most in terms of market cap among Sensex stocks, followed by Larsen & Toubro, Reliance Industries and Tata Consultancy Services. On the other hand, Axis Bank, Mahindra and Mahindra and Asian Paints saw the biggest drop in market cap.

All sectoral indices ended in the green, with the BSE realty index surging 5 percent, capital goods 5 percent, energy 4.7 percent and the BSE Power index rose 4.7 percent.

Foreign institutional investors (FIIs) selling spree continued for the seventh consecutive week, as they offloaded equities worth Rs 9,321.41 crore, while domestic institutional investors (DIIs) bought shares worth Rs 4,572.14 crore during the week.

The Indian rupee remained under pressure but showed some recovery on September 8. It still ended 22 paise lower at 82.94 against the dollar on September 8 against its September 1 closing of 82.72.