Mumbai: After four weeks of losses, domestic equities staged a mild recovery from six-month lows, with both key market indices Sensex and Nifty reclaiming the psychological 26,000 and 8,000 levels, respectively.

Foreign investors constant offloading Indian stocks over potential US rate hike next month and cash-crunch shock in most of the sectors due to government’s demonetization drive played the part in market momentum with key index tumbling to six-month low of 25,717.93.

While, market witnessed short-covering ahead of November derivative expiry amid higher global cues acting bulwark against the persistent losses enduring the inherent domestic market strength during the week. Stocks once again lost viability on rupee volatility as it plunged to a fresh life-time record low of 68.86 against dollar during November expiry day — pulling the market once again to end below the key 26,000-level. However, the weekend saw the the first day of December series starting on a positive note with recovering rupee after RBI intervened heavily to arrest the currency’s fall, while the US Thanksgiving holiday break stopped the dollar relentless surge as well as helped to pause sucking of FII capital from emerging markets. Domestic traders lapped up beaten-down but fundamentally strong stocks amid firm global cues supported by positive Fitch Ratings on India’s GDP growth. Market sentiment revived to some extent after the rating agency forecast India’s economic growth to accelerate next fiscal on the back of reforms and monetary policy easing. Besides, the fall in rupee value also lifted the IT and pharma stocks. During the week, the Sensex gained 166.10 points, or 0.64 per cent, to settle at 26,316.34. It hovered in the range of 26,343.95 and 25,717.93 during the week. The Sensex has lost 1,926.94 points, or 6.86 per cent, in last four weeks. The Nifty 50 index during the week rose 40.20 points, or 0.50 per cent, to end at 8,114.30 after shuttling between 8,122.25 and 7,916.40. The broader market index fell by 618.95 points, or 7.12 per cent, in last four weeks. The buying was led by IT, teck, metal, consumer durable, healthcare, FMCG, realty sectors, followed by shares of smallcap and midcap companies shares. While selling was witnessed in bankex, auto, PSUs, power, capital goods and oil&gas counters. –PTI