Mumbai: The last week of the year 2012 paved the way for 2013 to gain further momentum on the back of year-end reforms amid indications of more tough stance to be taken by the government to deal with the rising fiscal as well as trade deficit.
    
Sensex rose by almost 203 points to end the week at 19,444.84, snapping its last 2-week losing streak.
 
All-round buying led by refineries, realty, power and capital goods, following persistent capital inflows from foreign funds amid sops for exporters announced by the government during the week also boosted the market sentiment.
     
RIL, ONGC, IOC and BPCL attracted heavy buying following reports that the government might gradually increase the diesel price to cut subsidies.
     
The possibility of tough reforms after speech of Prime Minister Manmohan Singh at the National Development Council (NDC) meeting, indicating a phased reduction in energy subsidies, and an early implementation of the Goods and Services Tax (GST) helped the recovery.
     
The government announced extension of 2 percent interest subsidy to exporters till March 2014 and a pilot scheme of 2 percent interest subsidy for project exports through Exim Bank.
     
The BSE benchmark Sensex resumed higher at 19,278.00 and hovered in a range of 19,504.40 and 19,237.26 before settling the week at 19,444.84, disclosing a net gain of 202.84 points or 1.05 percent.
     
The NSE 50-share Nifty also shot up by 60.65 points or 1.04 percent to 5,908.35.

IT stocks gained as US lawmakers arranged talks with political parties over the budget deficit issue before the deadline.
     
Foreign Institutional Investors (FIIs) continued their buying spree during the week by investing net Rs 5,663.20 cr including the provisional figure of December 28.
     
Asian stocks ended higher on Friday with Japanese shares poised for their biggest annual gain since 2005, after a report fanned speculation that the country's central bank will respond to government calls for more asset purchases.
     
Overall, 21 out of 30 Sensex-based scrips closed with gains while others finished with losses.
     
Major gainers were Bharti Airtel (3.65 pct), Tata Motors (3.42 pct), Wipro (3.23 pct), Tata Power (2.93 pct), Bajaj Auto (2.36 pct), Reliance Ind (2.11 pct), Larsen (1.85 pct), SBI (1.89 pct), ONGC (1.82 pct) and Icici Bank (1.74 pct).
     
However, Jindal Steel declined by 1.94 pct, M&M by 1.40 pct and HUL by 1.12 pct.
     
All 13 sectoral indices settled with gains between 0.02 pct and 2.05 pct. The BSE-Oil&Gas rose by 2.05 pct followed by BSE-Realty 2.02 pct, BSE-Power 1.68 pct, BSE-CG 1.58 pct, BSE-Teck 1.50 pct, BSE-PSU 1.46 pct, Bankex 1.27 pct and BSE-IT 1.13 pct.
     
The total turnover at BSE and NSE dropped to Rs 8,780.72 cr and Rs 40,379.64 cr respectively during the truncated week from the previous week's level of Rs 12,784.27 cr and Rs 63,160.24 cr.
     
The BSE and NSE were closed on December 25 on account of "Christmas".
     
Forex: Rupee broke its three-week falling trend and appreciated by 29 paise to close at over 1 week high of 54.77 against the dollar during the shortened week under review following strong local equities amid fresh dollar selling by exporters and some banks. The Forex market was closed on December 25 for observing "Christmas".
     
Persistent capital inflows amid weak dollar overseas on concerns over the US fiscal cliff also helped the rupee recovery, a forex dealer said.
     
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly weak at 55.10 as against last weekend's close of 55.06 and immediately touched a low of 55.21 on Monday following month-end as well as year-end dollar demand from importers, mainly oil refiners.
     
Later, it turned positive on dollar selling by exporters and some banks amid continued foreign fund inflows. It touched a high of 54.72 before concluding at 54.77, showing a rise of 29 paise or 0.53 percent. In last 3 weeks, it had dropped by 80 paise or 1.47 percent.
     
Sensex closed the week higher by 202.84 points or 1.05 pct while Foreign Institutional Investors (FIIs) injected USD 877.12 million in the first 3 trading days of the week, as per Sebi data.
     
The Commerce Ministry approved a package of incentives to boost exports, which supported the rupee.
     
Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said," The INR regained some of the lost ground of previous few weeks. The trading activity remained low due to Christmas and New Year vacations plagued global and domestic markets with thinner volumes."

"The hopes of an accommodative monetary policy by the RBI in the last quarter of the financial year 2012-13 helped the recovery in Rupee, supported by rising capital inflows and exporter selling."
    
"The month end and quarter end demand for dollar from Oil and Gold importers continued to restrict strengths in INR. Exporters can take advantage of the rise in pair towards 55.50 - 56.00 levels for covering their receipts as a move above 54.70 shall witness the pair strengthening towards 54.20 levels," he added.
    
The RBI fixed the reference rate for US dollar and euro at Rs 54.8473 and Rs 72.6298 from Rs 55.0860 and Rs 72.7730, respectively, in the last weekend.
     
The Rupee premium for the forward dollar remained weak on sustained receiving by exporters.
     
The Rupee premium for the benchmark 6-month forward dollar payable in May dropped further to 148-150 paise from last weekend's level of 157-1/2-159-1/2 paise and far-forward contracts maturing in November also declined sharply to 288-290 paise as against 301-303 paise.
     
The rupee recovered smartly against Pound Sterling to end the week at 88.31 from preceding weekend's level of 89.44 and also hardened against the euro to finish at 72.16 from last weekend's level of 72.71. However, it bounced back against the Japanese yen to close at 63.51 per 100 yen from 65.42 last weekend.

Oil and oilseeds: Edible oils firmed up, while non-edible oils dropped at the Oils and oilseeds market during the week under review.
    
Groundnut oil prices recovered from its initial sluggishness to trade higher on renewed demand from stockists and retailers amid export offtake.
      
Refined palmolein strengthened following sustained demand from retailers on the back of firm Malaysian cues.   
    
Castorseeds bold and castoroil commercial slumped owing to heavy sell-off amid subdued demand from shippers and soap industries.
     
Castorseeds futures dipped due to hectic speculative selling as well as poor export enquiries. Linseed oil eased on lower offtake from paint and allied industries.
    
In the edible oils segment, groundnut oil resumed slightly lower at Rs 1,275, but later gained further to close at Rs 1,285 per 10 kg from last weekend's level of Rs 1,280. showing a gain of Rs 5.
    
Refined palmolein opened slightly higher at Rs 485 and hardened further to end at Rs 497 from preceding weekend's level of Rs 483, showing a smart gain of Rs 14 per 10 kg.
    
In the non-edible section, Castorseeds bold resumed weak at Rs 3,700 and fell further to Rs 3,540 before finishing at Rs 3,565 from last weekend's level of Rs 3,750, a net fall of Rs 185 per 100 kg.
    
Castoroil commercial also opened lower at Rs 770 and declined to Rs 738 before concluding at Rs 743 from its previous weekend's level of Rs 780, a loss of Rs 37 per 10 kg.
    
Linseed oil resumed steady at Rs 815, later eased further to close at Rs 810 per 10 kg from its preceding weekend level of Rs 815, showing a modest loss of Rs 5.
    
Moving to the futures section, castorseeds for the March delivery resumed lower at Rs 4,060 and dropped further to Rs 3,812 before concluding at Rs 3,879 from last Saturday's closing level of Rs 4,101, showing a net fall of Rs 222 per tonne.

(Agencies)

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