Positive global cues buoy equity markets (Roundup)

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Mumbai, May 17 (IANS) Positive global indices, along with higher crude oil prices and expectations of better quarterly results, buoyed the Indian equity markets on Tuesday.

Consequently, key indices closed the day’s trade in the green. A late-hour selling spree, however, led by profit booking capped the day’s gains.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged higher by 30 points or 0.38 percent, at 7,890.75 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,756.14 points, closed at 25,773.61 points — up 120.38 points or 0.47 percent from the previous close at 25,653.23 points.

The Sensex touched a high of 25,927.31 points and a low of 25,733.76 points during the intra-day trade.

The BSE market breadth marginally favoured the bulls with 1,304 advances and 1,301 declines.

Both the key indices had ended on a higher note during the previous trade session on Monday, as value buying and expectations of further economic reforms lifted prices.

The barometer index had gained 163.66 points or 0.64 percent, while the NSE Nifty had risen by 45.89 points or 0.59 percent.

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Broader markets also gained in line with the headline indices.

Initially, the key indices opened on a positive note on Tuesday, in sync with their Asian peers and a positive close to the US exchanges on Monday.

The Asian and domestic equity markets rose after oil prices surged due to supply side constraints.

Besides, expectations of healthy quarterly results supported the upward movement.

Moreover, investors’ sentiments turned bullish a day after exit polls predicted an electoral victory for the Bharatiya Janata Party (BJP) in Assam.

This could potentially strengthen the central government’s ability to push through economic reforms.

However, investors were seen cautious, given the recent negative macro-economic data and poor quarterly results from state-owned banks.

Key economic indicators have shown a rise in inflation trend that has reduced the chances of the Reserve Bank of India (RBI) further easing its key lending rates during the monetary policy review scheduled for June.

In addition, the risk-taking appetite of investors was subdued a day ahead of the US Federal Open Market Committee (FOMC) releasing its minutes.

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The US FOMC minutes assume significance as they can give vital cues on the future course of US interest rates.

A hike in interest rates is expected to lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.

“Higher crude oil prices due to supply side disruptions lifted global and domestic indices,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

According to Vaibhav Agarwal, vice president and research head at Angel Broking, key indices ended on a positive note led by strong Asian markets.

“The market breadth indicating the overall health of the market was strong,” Agarwal noted.

“European stocks traded higher pulled up by the miners amid a rally in oil prices. US’s jobless data along with CPI of UK and US will be a key trigger for the coming days.”

During the day’s trade, the foreign institutional investors (FIIs) turned net sellers, while the domestic institutional investors (DIIs) were net buyers.

Data with stock exchanges showed that the FIIs sold scrip worth Rs.224.97 crore, while the DIIs purchased stocks worth Rs.384.64 crore.

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Sector-wise, healthy buying was witnessed in oil and gas, automobile and capital goods stocks, whereas scrip of fast moving consumer goods (FMCG), power and telecom came under intense selling pressure during the day’s trade.

The S&P BSE oil and gas index surged by 108.12 points, followed by the automobile index, which gained by 105.94 points; and the capital goods index rose by 73.10 points.

Conversely, the S&P BSE FMCG index dipped by 12.23 points, followed by the power index, which fell by 6.89 points; and the telecom index inched down by 3.87 points.

Major Sensex gainers during Tuesday’s trade were ONGC, up 3.72 percent at Rs.210.35; Axis Bank, up 3.32 percent at Rs.503; HDFC, up 2.44 percent at Rs.1,216.25; Asian Paints, up 1.92 percent, at Rs.969.90; and Maruti Suzuki, up 1.77 percent at 3,949.15.

Major Sensex losers were NTPC, down 2.18 percent at Rs.137.05; Hindustan Unilever (HUL), down 1.56 percent at Rs.833.25; Adani Ports, down 1.29 percent at Rs.183.40; HDFC Bank, down 0.81 percent at Rs.1,153.60; and Tata Motors, down 0.68 percent at Rs.389.90.



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