Positive global cues lift Indian equities

Mumbai, Nov 16 (IANS) After two-consecutive sessions of losses, the Indian equity markets made gains during the mid-afternoon trade session on Wednesday, as positive global indices, coupled with a recovering rupee and higher crude oil prices buoyed investors sentiments.

The two key indices traded with gains of almost half a per cent each on the back of healthy buying in automobile, IT and TECK (technology, media and entertainment) stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 44.95 points or 0.55 per cent to 8,153.40 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,508.94 points, traded at 26,425.01 points (at 1.45 p.m.) — up 120.38 points or 0.46 per cent from the previous close at 26,304.63 points.

The Sensex has so far touched a high of 26,621.40 points and a low of 26,326.89 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,347 advances and 1,112 declines and 346 advances.

On Tuesday, the Indian equity markets had plunged due to rupee depreciation, foreign fund outflows and an anxiety over the impact of the demonetisation move.

The barometer index had declined by 514.19 points or 1.92 per cent, while the NSE Nifty receded by 187.85 points or 2.26 per cent.

“The markets have recovered tracking positive global markets, especially the US markets and Japan’s Nikkei. The USDINR, after touching a 11-month high yesterday, took a breather today and traded flat,” Astha Jain, Senior Research Analyst at Hem Securities, told IANS.

“Crude oil prices are higher, as investors are hopeful of a production cut in the OPEC (Organisation of Petroleum Exporting Countries) meet later this month.”

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

“IT, banking, pharma, auto, oil-gas and textile stocks traded firm due to short covering,” Desai said.

“Aviation and FMCG stocks traded with mixed sentiments, while cement, power and media-entertainment stocks traded firm on buying support at lower levels.”