Value buying, healthy results buoy equity markets

Mumbai, Oct 28 (IANS) Value buying and healthy quarterly results buoyed the Indian equity markets during the late afternoon trade session on Friday.

The key indices made a healthy recovery after negative global cues had subdued investors’ sentiments.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) was higher by 33.05 points or 0.38 per cent to 8,648.30 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,983.14 points, traded at 27,991.54 points (at 2.30 p.m.) — up 75.64 points or 0.27 per cent from the previous close at 27,915.90 points.

The Sensex has so far touched a high of 28,000.14 points and a low of 27,789.84 points during the intra-day trade.

In contrast, the BSE market breadth was firmly in favour of the bulls — with 1,594 advances and 957 declines.

On Thursday, the equity markets closed flat, even as short covering, along with bargain hunting, helped the key indices to pare initial losses.

The recovery was triggered during the last half an hour of Thursday’s trade with a bounce-back in European indices after latest macro-data showed that United Kingdom’s GDP grew at 0.5 per cent in the third quarter.

However, earlier cues like negative global cues, lower crude oil prices and disappointing quarterly earning results dragged the key indices lower.

The barometer index had declined by 79.39 points or 0.29 per cent to 27,915.90 points, while the NSE Nifty closed unchanged at 8,615.25 points.

“Healthy quarterly results and value buying lifted the equity markets after the initial downturn,” Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS.

“However, weak global markets, lower crude oil prices and caution over upcoming release of US GDP data capped gains.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls: “IT and banking stocks witnessed recovery from lower levels, whereas pharma, auto, oil-gas, textile and aviation stocks traded with firm sentiments on buying support.”