Mumbai, July 12 (IANS) Positive global cues, combined with short covering and healthy inflow of foreign funds, buoyed the Indian equity markets to their new 11-months closing high levels on Tuesday.
The key indices closed the day’s trade up more than 0.60 per cent with healthy buying witnessed in banking, metal and automobile stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) gained by 53.15 points or 0.63 per cent to 8,521.05 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,667.81 points, closed at 27,808.14 points — up 181.45 points or 0.66 per cent from the previous close at 27,626.69 points.
The Sensex touched a high of 27,828.74 points and a low of 27,667.81 points during the intra-day trade.
In contrast, the BSE market breadth was tilted in favour of the bears — with 1,519 declines and 1,243 advances.
Both indices ended in the positive territory during the previous trade session on Monday to reach their new closing highs in the last 11 months.
The barometer index on Monday edged up by 499.79 points or 1.84 per cent to 27,626.69 points, while the NSE Nifty gained by 144.70 points or 1.74 per cent to 8,467.90 points.
Initially on Tuesday, the indices opened on a firm note in sync with their Asian peers, especially the Japanese markets.
The Asian stocks rose after the Japanese government announced plans for a new stimulus package. European stocks, too, gained on hopes of more monetary easing measures by central banks.
Besides, healthy progress of monsoon season, fresh buying support, expectations of recapitalisation of state-run banks and higher crude oil prices enhanced investors’ risk-taking appetite.
Investors were also seen optimistic about the upcoming quarterly earnings season. IT (information technology) major Infosys is expected to be the first bluechip firm to come out with its results on July 15.
However, gains were capped due to profit booking at higher levels and uncertainties over upcoming macro-economic data like factory output — Index of Industrial Production (IIP) — for May and inflation figures for June.
Dhruv Desai, Director and Chief Operating Officer of Tradebulls pointed out that Nifty opened with marginal gains by tracking positive global cues and managed to sustain the gains throughout the trading session.
“Bank Nifty also traded firm tracking strong buying sentiments in banking sector stocks. Pharma sector stocks traded with volatile sentiments mainly due to profit booking at higher levels,” Desai noted.
According to Vaibhav Agarwal, Vice President and Research Head at Angel Broking, key indices initially came off intra-day highs after extending initial gains but eventually they closed at higher levels.
“European markets traded higher on the back of expectations of monetary stimulus by their central banks and this also had a positive impact on Indian markets,” Agarwal said.
In terms of investments, the provisional data with exchanges showed that the foreign institutional investors (FIIs) bought stocks worth Rs 212.92 crore, and the domestic institutional investors (DIIs) purchased scrip worth Rs 119.27 crore.
Nevertheless, the Indian rupee closed flat. It slipped by six paise to 67.19 against a US dollar from its previous close of 67.13 to a greenback.
Sector-wise, the S&P BSE banking index surged by 340.83 points, followed by the metal index, which edged up by 254.17 points, and the automobile index rose by 114.84 points.
On the other hand, the S&P BSE healthcare index fell by 80.15 points, followed by the FMCG (fast moving consumer goods) index, which slipped by 41.39 points, and the IT (information technology) index dipped by 3.54 points.
Major Sensex gainers during Tuesday’s trade were: ICICI Bank, up 4.68 per cent at Rs 261.55; Tata Steel, up 4.63 per cent at Rs 342.40; Axis Bank, up 3.03 per cent at Rs 560.85; Maruti Suzuki, up 2.27 per cent at Rs 4,370.05; and HDFC, up 1.50 per cent at Rs 1,332.75.
Major Sensex losers were: Coal India, down 1.14 per cent at Rs 316.85; Cipla, down 0.99 per cent at Rs 516.20; Asian Paints, down 0.82 per cent at Rs 1,018.65; Sun Pharmaceuticals, down 0.73 at Rs 783.75; and Dr Reddy’s Lab, down 0.69 per cent at Rs 3,591.30.