Positive domestic cues, value buying buoy markets

Mumbai, May 12 (IANS) Positive domestic cues, such as parliamentary approval for key economic legislation and value buying, buoyed the Indian equity markets on Thursday.

Consequently, the key indices of the Indian equity markets traded in the green during the late-afternoon trade session.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 44.10 points or 0.56 percent, at 7,892.95 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,684.60 points, traded at 25,770.02 points (at 3.00 p.m.) — up 173 points or 0.68 percent from the previous close at 25,597.02 points.

The Sensex has so far touched a high of 25,827.03 points and a low of 25,620.27 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls – with 1,545 advances and 960 declines.

Both the key Indian indices had ended in the red during the previous trade session on Wednesday. The barometer index had edged lower by 175.51 points or 0.68 percent, while the NSE Nifty had closed down by 38.95 points or 0.49 percent.

Initially, the equity markets opened on a positive note, a day after parliament passed key economic legislation.

The Rajya Sabha on Wednesday had passed the Insolvency and Bankruptcy Code 2016, which is seen as a key reform that will encourage entrepreneurship.

Besides, value buying was triggered due to attractive prices from Wednesday’s correction.

However, gains were capped as investors were seen cautious ahead of the release of key domestic macro-economic data such as CPI (Consumer Price Index) and IIP (Index of Industrial Production).

“Yesterday’s correction made prices attractive which triggered value buying and supported the markets’ upward movement,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

“Investors’ confidence was restored after the Rajya Sabha passed key economic legislation.”



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