Mumbai, June 29 (IANS) Positive global indices, along with a rise in crude oil prices and a firm rupee, buoyed the Indian equity markets on Wednesday.
Consequently, the key indices made healthy gains during the late-afternoon trade session, as healthy buying was witnessed in automobile, banks and consumer durables sectors.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) gained by 71.50 points or 0.88 per cent, at 8,199.35 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,627.15 points, traded at 26,747.97 points (3.00 p.m.) — up 223.42 points or 0.84 per cent from the previous close at 26,524.55 points.
The Sensex has so far touched a high of 26,748.89 points and a low of 26,606.31 points during the intra-day trade.
The BSE market breadth was skewed in favour of the bulls — with 1,810 advances and 732 declines.
Initially, the key indices opened on a flat-to-positive note, a day after healthy gains were made in the US and European markets and Wednesday’s positive start to the Asian exchanges.
Further, higher global crude oil prices and a firm rupee enhanced investors’ risk-taking appetite.
Besides, government’s latest decision to accept the Seventh Pay Commission’s recommendations supported prices at the lower levels.
However, gains were capped as investors turned cautious ahead of the F&O (futures and options) expiry.
Even the healthy US macro-economic data made investors nervous on the possibility of an early onset to the next round of the US Federal Reserve’s rate hike cycle.
Earlier, the US FOMC (Federal Open Market Committee) had decided to maintain its key lending rates. The US Fed signalled its intention to limit the times it might increase key lending rates due to a weak domestic jobs market.
A hike in the US interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.
“Positive global markets, rising crude oil prices and a firm rupee aided markets to make early gains,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
“However, the upcoming F&O expiry and risk of early onset of rate hikes in the US after the release of healthy macro-economic data capped gains.”
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, IT (information technology), banking and auto sector stocks traded on a firm note on the back of fresh buying support.
“Pharma sector stocks traded with marginal gains facing resistance at higher levels due to profit booking,” Desai told IANS.
“USD/INR futures prices witnessed some recovery due to which Nifty may face resistance at higher levels.”