Positive global cues buoy Indian equities

Mumbai, Dec 21 (IANS) Positive global cues, along with an appreciating rupee and short covering, buoyed the Indian equity markets during the mid-afternoon trade session on Wednesday.

The key indices traded flat — marginally in the green — as healthy buying was witnessed in automobile, metal and banking stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched up by 15 points or 0.19 per cent to 8,097.40 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 26,368.88 points, traded at 26,368.20 points (at 1.45 p.m.) — up 60.22 points or 0.23 per cent from the previous close at 26,307.98 points.

The Sensex has touched a high of 26,394.14 points and a low of 26,296.26 points during the intra-day trade so far.

The BSE market breadth was tilted in favour of the bulls — with 1,242 advances and 1,136 declines.

“The equity markets traded rangebound after yesterday’s fall due to lack of any major cues to direct the markets,” Astha Jain, Senior Research Analyst at Hem Securities, told IANS.

“However, weakening of the US dollar has provided some strength to the Indian rupee. Even the global indices were largely positive.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with firm sentiments due to short covering.

“USD/INR futures prices witnessed selling pressure at higher levels, which supported the recovery in the Nifty,” Desai added.

“Oil-gas, textile, aviation, media-entertainment and cement stocks traded firm due to buying support, whereas FMCG and power stocks witnessed selling pressure.”

On Tuesday, the benchmark indices had crashed to their lowest level for the last two weeks on the back of foreign fund outflows, coupled with weak global cues and rupee depreciation.

The barometer index had closed lower by 66.72 points or 0.25 per cent, while the NSE Nifty slipped by 21.95 points or 0.27 per cent.