Equity markets soar on positive global cues

Mumbai, Sep 22 (IANS) Indian equity markets soared on the back of positive global cues on Thursday.

Both the key indices gained around a percentage each during the mid-afternoon trade session, as healthy buying was witnessed in stocks of banking, automobile, and capital goods.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) surged by 88.80 points or 1.01 per cent, to 8,865.95 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,766.94 points, traded at 28,777.20 points (at 2.45 p.m.) — up 269.78 points or 0.95 per cent from the previous close at 28,507.42 points.

The Sensex has so far touched a high of 28,871.92 points and a low of 28,693.07 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,618 advances and 1,043 declines.

On Wednesday, the benchmark indices had closed flat as the initial gains were pared by a last hour bout of profit booking.

The barometer index had slipped by 15.78 points or 0.06 per cent. In contrast, the NSE Nifty had inched up by 1.25 points or 0.01 per cent.

“Fed’s decision to hold interest rates fuelled a rally in the equity markets globally leading to a sharp gap up move in our markets as well,” said Nitasha Shankar, Senior Vice President for Research with YES Securities.

“The benchmark indices, however, have given up gains partially following this gap up opening, nonetheless they continued to trade in the positive territory.”

Initially on Thursday, the benchmark indices opened in the green following positive global cues.

Investors’ sentiments were buoyed on the US Federal Reserve’s decision to keep its key interest rates unchanged for September.

Besides, domestic cues such as the proposal to merge the general and railway budget, along with consultations to advance the budget presentation date, gave a positive momentum to the equity markets.

Shankar added that the broader markets also traded in the positive territory in line with the headline index.

“The midcap index traded higher by 0.75 per cent and the smallcap index traded up by 0.90 per cent.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty faced profit booking at higher levels and trading firm.

“Auto, oil and gas, and textile stocks held the initial gains on strong buying support from traders,” Desai said.

“Aviation stocks traded with firm sentiments, however higher crude oil prices may pressurise the gain at higher levels.”

–IANS

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