Mumbai, July 22 (IANS) Positive domestic cues such as value buying, short covering and a firm rupee lifted the Indian equity markets on Friday.
Consequently, the key indices traded in the green during the late-afternoon session, as healthy buying was witnessed in capital goods, metals and automobile stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 27.30 points or 0.32 per cent to 8,537.40 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,721.72 points, traded at 27,796.69 points (at 2.45 p.m.) — up 86.17 points or 0.31 per cent from the previous close at 27,710.52 points.
The Sensex has touched a high of 27,823.15 points and a low of 27,646.21 points so far during the intra-day trade.
The BSE market breadth was tilted in favour of the bulls — with 1,484 advances and 1,102 declines.
On Thursday, the benchmark indices ended on a lower note on the back of profit booking, global event risks and a logjam in parliament. The barometer index had declined by 205.37 points or 0.74 per cent, while the NSE Nifty edged lower by 55.75 points or 0.65 per cent.
Initially on Friday, the benchmark indices opened on a flat-to-negative note, in sync with their Asian peers, especially the Japanese markets.
Besides, the equity markets were pulled down by lower global crude oil prices, a logjam in parliament and negative European indices.
Furthermore, sector-specific profit booking on the back of quarterly results hampered the upward trajectory.
In addition, the European Central Bank (ECB) decision to halt the easing of its monetary policy dampened investors’ sentiments.
However, the consolidation led to value buying which lifted prices during the mid-afternoon trade session.
Moreover, short covering, a firm rupee, hopes on the passage of the GST (Goods and Services) Bill during the ongoing parliament session and healthy progress of the monsoon season supported prices.
“A week-long consolidation attracted fresh value buying and short covering. However, the equity markets had opened on a lower note due to negative Asian markets but recovered,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
“Less pessimistic outlook by the ECB in its monetary policy review and some healthy results that came out yesterday after the market hours put a cap on the key indices at lower levels. There is also optimism on the passage of GST bill.”
Dhruv Desai, Director and Chief Operating Officer of Tradebulls, pointed out that
Nifty and Bank Nifty traded with firm sentiments on the back of short covering.
“Correction in USD/INR futures prices also supported the upside in Nifty,” Desai noted.
“Banking sector stocks are showed good recovery from lower levels, while most aviation sector stocks traded with firm sentiments on strong buying support.”