Positive global cues, fresh buying buoy equity markets

Mumbai, Sep 19 (IANS) Positive global indices, along with higher crude oil prices and value buying, buoyed the Indian equities markets during the mid-afternoon trade session on Monday.

However, upcoming global event risks such as monetary policy announcements from major economies and profit booking at higher levels capped gains.

Both the key indices traded on a flat-to-positive note as healthy buying was witnessed in IT, oil and gas, and metal stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) was up by 22.05 points or 0.25 per cent to 8,801.90 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,626.60 points, traded at 28,636.45 points (at 1.45 p.m.)– up 37.42 points or 0.13 per cent from its previous close at 28,599.03 points.

The Sensex touched a high of 28,714.77 points and a low of 28,552.55 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,408 advances and 1,186 declines.

Last week, on Friday, both the key Indian indices closed with appreciable gains prompted by reduced chances of a US rate hike, foreign fund inflows and value buying.

The barometer index had surged by 186.14 points or 0.66 per cent, while the NSE Nifty edged up 37.30 points or 0.43 per cent.

Initially on Monday, the benchmark indices opened on a firm note in sync with their Asian peers.

However, investors were seen cautious ahead of the US Fed’s FOMC (Federal Open Market Committee) meeting, which is scheduled for September 20-21.

A hike in US interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.

It is also expected to dent business margins as access to capital from the US will become expensive.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded firm and held initial gains on support of buying from traders.

“IT stocks faced profit booking at higher levels. Banking and pharma stocks also faced some resistance at higher levels due to profit booking,” Desai said.

“Aviation stocks faced profit booking at higher levels tracking higher crude oil prices. FMCG stocks also traded down on lack of buying interest at higher levels. Power stocks traded with mixed sentiments on profit booking,” he added.

–IANS

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