Equity markets soar on positive global, domestic cues (Roundup)

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Mumbai, Sep 22 (IANS) Positive global cues, coupled with fresh inflow of foreign funds and a strong rupee, lifted the Indian equity markets on Thursday.

Global and domestic equity markets surged after the US Federal Reserve decided to maintain unchanged its key lending rates.

Apart from global cues, positive current account deficit (CAD) data, the latest move by the government to merge the rail and general budgets, and the pace of developments along the Goods and Services Tax (GST) front enhanced investors’ risk-taking appetite.

Both the key domestic indices closed the day’s trade with gains of around a per cent each.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) surged by 90.30 points or 1.03 per cent, to 8,867.45 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,766.94 points, closed at 28,773.13 points — up 265.71 points or 0.93 per cent from the previous close at 28,507.42 points.

The Sensex 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 1,695 advances and 1,044 declines.

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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.

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 merger of general and railway budgets, along with consultations to advance the budget presentation date, gave a positive momentum to the equity markets.

In addition, data released by the Reserve Bank of India (RBI) after market hours on Wednesday, which showed that the country’s CAD narrowed to $0.3 billion or 0.1 per cent of GDP (Gross Domestic Product) in Q1 June 2016, uplifted the investors’ sentiments.

An appreciation in the rupee value by 35 paise to 66.67 against a US dollar from its previous close of 67.02 added to the upward trajectory.

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“Indian markets ended trade one per cent higher after FED maintained status quo. The benchmark indices, however, gave up morning gains,” said Nitasha Shankar, Senior Vice President for Research with YES Securities.

“Broader markets outperformed the headline Indices picking up pace in the second half of the trading session. The midcap and smallcap indices ended higher by 1.50 per cent.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with firm sentiments throughout the trading session, however, witnessing some profit booking at higher levels.

“IT stocks remained under pressure, tracking lower USD/INR futures prices. Banking stocks traded firm witnessing good buying from lower levels in second half of the session,” Desai said.

“Auto, oil-gas and aviation stocks traded firm throughout the session on strong buying sentiments. Cement, power and textile stocks also traded firm on over all firm sentiments in Indian equity markets in the intraday session.”

In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) purchased stocks worth Rs 336.87 crore, whereas the domestic institutional investors (DIIs) bought scrip worth Rs 310.35 crore.

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Sector-wise, the S&P banking index augmented by 338.52 points, followed by the automobile index, which surged by 322.25 points, and the capital goods index rose by 204.71 points.

On the other hand, the S&P BSE IT index fell by 37.26 points and the technology, media and entertainment (TECK) index dipped by 6.82 points.

Major Sensex gainers during Thursday’s trade were: State Bank of India (SBI), up 2.39 per cent at Rs 257.35; Hero MotoCorp, up 2.27 per cent at Rs 3,538.60; ICICI Bank, up 2.19 per cent at Rs 275.55; Adani Ports, up 2.06 per cent at Rs 275.20; and Asian Paints, up 1.97 per cent at Rs 1,192.35.

Major Sensex losers were: Tata Consultancy Services (TCS), down 1.49 per cent at Rs 2,377.65; Lupin, down 1.17 per cent at Rs 1,528.30; Axis Bank, down 1.01 per cent at Rs 591.95; Coal India, down 0.77 per cent at Rs 327.70; and Dr Reddy’s Lab, down 0.45 per cent at Rs 3,138.20.



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