Mumbai: An ambience of overwhelming optimism and promising growth outlook on the back of thriving economic activity triggered a massive wave of frantic buying sprint and catapulted Indian markets to a fresh 2016 high.

Leading an Asia-wide rally, the BSE flagship Sensexgalloped by an awesome 1,351.70 points, or 5.34 per cent, while NSE Nifty surged 406.95 points, or 5.25 per cent – the best weekly performance for both in three months.

The bullish mood was further underpinned by highly buoyant global sentiment. Investors’ sentiment was jubilant after a strong show by the BJP in recently held Assembly elections and also mounting expectations that the Modi government, fresh from completion of two years in office will pursue strong policy initiatives and ambitious structural reforms with renewed vigour to revive growth and macro stability. After a dismal start to trade on heightened worries over heavy capital outflows spooked by stricter participatory notes (P-notes) norms and mounting global jitters in the midst of an imminent Fed rate hike worries, bourses staged a spectacular come back from its two-week low due to growing confidence of economic recovery backed by a slew of strong corporate earnings outcome and kept its momentum going. The market scripted the dramatic recovery on reports that the global investment bank Morgan Stanley upgraded Indian equities to “overweight” from “equal weight” with attractive valuations against the backdrop of strong macro fundamentals. Moreover, forecast of good monsoon this year after consecutive drought years and encouraging March quarter earnings outcome with positive surprises on the last leg of the results season further injected extra shot of confidence. Robust foreign funds buying along with fresh positions built up by participants which got rolled into June series in the derivatives segment provided the much needed boost to the ferocious rally. Excitement and optimism that engulfed confident investors sentiment, triggered a wave of frantic buying sprint across the board with all sectoral indices scoring handsome gains. Capital goods stocks provided the biggest boost and spearheaded the powerful upsurge following upbeat Q4 earnings from Larsen & Toubro rekindled hopes of recovery in the domestic economy is gaining traction and also buoyed by the government’s approval to the country’s first-ever policy for the capital goods sector, envisaging creation of over 21 million new jobs by 2025. It was followed by financials, FMCG, power, realty, oil&gas, auto, technology, metal. The mid-cap and small-cap, too, attracted huge buying interest. The overall market sentiment may now be bottoming out after prolonged sideways movement, supported by growing evidence that the fledging economic recovery is getting more and more broad-based leaving worst behind, a floor trader commented. Better than expected showing by frontline heavyweights like L&t, ONGC, BPCL, HPCL, Tech Mahindra, Jet Airways, BEL, Sun Pharma also made investors comfort, he added. The BSE-Sensex opened at 25,447.72 and swung between a high of 26,677.43 and a low of 25,181.47 before concluding at 26,653.60, showing a hefty gain of 1,351.70 points, or 5.34 per cent. Similarly, the broader 50-share index resumed firm at 7,813.95 and fluctuated between a high of 8,164.20 and a low of 7,715.80, before ending at 8,156.65, revealing a smart rise of 406.95 points, or 5.24 per cent. Meanwhile, foreign portfolio investors (FPIs) bought shares worth whopping Rs 872.38 crore during the week as per Sebi’s record including the provisional figure of May 27. In the broader market, the BSE Mid-Cap index rose by 323.85 points or 2.94 per cent to settle at 11,347.03. The BSE Small-Cap index rose by 146.70 points or 1.34 per cent to settle at 11,110.96. Both these indices underperformed the Sensex. Among the S&P, BSE sector and industry indices, capital goods rose 11.19 per cent, followed by Bankex 6.46 per cent, FMCG 5.50 per cent, power 4.34 per cent, realty 4.11 per cent, oil & gas 3.94 per cent, auto 3.56 per cent, IT 3.26 per cent, teck 3.20 per cent, metal 2.98 per cent, healthcare 1.24 per cent and consumer durables 0.72 per cent. In the 30-share Sensex pack, 28 stocks gained and only two of them declined in during the week. Major gainers were L&T spurted 17.25 per cent and was the top weekly gainer among the 30-share Sensex pack. It was followed by SBI with an amazing 14.06 per cent spike after the lender reported 66 per cent fall in net profit figures for the quarter ended March 2016 which was in line with market expectations. Other major movers included, ICICI Bank (10.43 pc), ITC (8.94 pc), Adani Ports (7.70 pc), Bhel (7.51 pc), HDFC (6.54 pc), HUL (6.02 pc), Tata Motors (4.93 pc), Maruti (4.92 pc), Axis Bank (4.53 pc) and Bajaj Auto (4.33 pc). However, shares of Cipla fell by 6.62 per cent topping the losers list along with Lupin 1.62 per cent. The total turnover during the week on the BSE fell to Rs 13,316.16 crore from last weekend’s level of Rs 15,237.67 crore while NSE rose to Rs 90,933.20 crore from Rs 79,727.92 crore. Oils and Oilseeds: Refined palmolein regains, groundnut oil held steady, while castorseeds bold and castoroil commercial dropped further, however, linseed oil rebounds at the wholesale oils & oilseeds market during the week under review. Refined palmolein prices slightly edged up due to good demand from retailers. Groundnut oil ruled stable in absence of any worthwhile buying. However, castorseeds bold and castoroil commercial declined further due to consistent stockists selling as well as reduced offtake from shippers and soap industries. Linseed oil recovered owing to renewed demand from paint and allied industries. In the edible segment, refined palmolein commenced lower at Rs 575 and declined further to Rs 570 before ending at Rs 578 as against last weekends level of Rs 577 per 10kg, showing a marginal gain of rupee per 10kg. Groundnut oil prices resumed steady at Rs 1,180 and moved in a range of Rs 1,150 and Rs 1,170 before settling at preceeding weekend level of Rs 1,180 per 10kg. Castorseeds bold opened lower at Rs 3,250 and dropped further Rs 3,210 before closing at Rs 3,255 as against last weekends level of Rs 3,275 per 100kg, showing a loss of Rs 20. Similarly, castoroil commercial also resumed lower at Rs 680 and declined further to Rs 672 before ending at Rs 681 per 10kg as against to Rs 685 previously, showing a loss of Rs 4. Linseed oil prices opened steady at Rs 1,200 and moved up to settle at Rs 1,250 towards the fag end from previous weekend level of Rs 1,200, showing a rise of Rs 50 per 10kg. Bullion: Extending its downward spiral for the third consecutive week gold suffered yet another blow and closed below the psychologically significant Rs 29,000-barrier – its lowest level in 1-1/2 month at the domestic bullion market here on heavy unwinding from jewellery traders and speculative investors amid global cues Subdued buying interest from retailers as well as poor seasonal off-take on expectations of further slid too weighed on trade despite ongoing festivities on the back of declining trend at the overseas market. Elsewhere, tracking the general trend, silver also plummeted sharply to end below the Rs 40,000 mark on frantic selling by stockists and investors coupled with lack of demand from industrial units. On the global front, Gold futures yesterday logged an eighth-straight daily drop, losing about 3 per cent for the week to settle at a three-month low, as continued strength in the US dollar helped push prices for the metal toward lows last seen in late February. Prices continued to fall as US Federal Reserve Chair woman Janet Yellen, during an interview that began shortly before the gold futures settlement, said an interest-rate increase could be appropriate in the coming months. The yellow metal saw a 3.1 per cent weekly drop, which was the largest since the week ended Nov.6. “A firming dollar and expectations for higher interest rates are good excuses for the current dip in gold prices,” a dealer said. — PTI