Key market indices trade higher on healthy expectations of quarterly results; possible passing of GST bill in parliament aid upward movement
Mumbai, July 18: Key Indian equity markets were on Monday buoyed by expectations of robust quarterly results and mixed global cues.
The indices traded on a flat-to-positive note during the mid-afternoon trade session, with healthy buying witnessed in automobile, banking and capital goods stocks.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,920.66 points, traded at 27,909.64 points (at 1.40 p.m.) — up 73.14 points or 0.26 per cent from the previous close at 27,836.50 points.
It touched a high of 28,013.50 points and a low of 27,888.79 points during the intra-day trade.
The BSE market breadth was tilted in favour of the bulls — with 1,475 advances and 1,110 declines.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up to 8,559.65 points — up 18.25 points or 0.21 per cent.
On Friday, the benchmark indices closed lower subdued by profit booking, a weak rupee and lower crude oil prices.
The barometer index was down 105.61 points or 0.38 per cent, while the Nifty edged down by 23.60 points or 0.28 per cent.
Initially, the benchmark indices opened higher following firm global cues and expectations of the Goods and Services Tax (GST) bill passing in the monsoon session of parliament on Monday.
The markets were mainly moved by healthy expectations out of quarterly results which are to be announced later during Monday.
Some movement was noticed in the state-owned banks, specially State Bank of India’s subsidiary banks. Expectations of the government’s announcement of the next round of capital infusion in state-run banks, for which Rs 25,000 crore has been earmarked for this fiscal boosted investors’ sentiments.
“Positivity or expectations regarding GST is guiding the markets, but the major cue is the earnings season. So, GST remains in the background but earnings remain the dominant thing today (Monday),” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
“Bank Nifty stocks are outperforming as of now. IT (information technology) stocks which had fallen following last week results have bounced back,” he said.
“The rupee is actually on the stronger footing. Possible rate cut expectations due to firm inflation may have helped the rupee.”