Positive global cues lift equity markets

Mumbai, July 12 (IANS) Positive global cues, combined with short covering and healthy monsoon rains, buoyed the Indian equity markets to new intra-day highs in the last 11 months on Tuesday.

Consequently, the key indices traded on a higher note during the late-afternoon session, as healthy buying was witnessed in banking, metal and consumer durables stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) gained by 39.90 points or 0.47 per cent to 8,507.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,667.81 points, traded at 27,768.54 points (at 2.50 p.m.) — up 141.85 points or 0.51 per cent from the previous close at 27,626.69 points.

The Sensex has so far touched a high of 27,774.76 points and a low of 27,667.81 points during the intra-day trade.

In contrast, the BSE market breadth was tilted in favour of the bears — with 1,517 declines and 1,157 advances.

Both indices had ended in the positive territory during the previous trade session on Monday to reach their new closing highs in the last 11 months.

The barometer index on Monday edged up by 499.79 points or 1.84 per cent to 27,626.69 points, while the NSE Nifty gained by 144.70 points or 1.74 per cent to 8,467.90 points.

Initially on Tuesday, the indices opened on a firm note in sync with their Asian peers, especially the Japanese markets.

Other cues such as healthy progress of the monsoon season and expectations of further economic reforms enhanced investors’ risk-taking appetite.

However, gains were capped due to profit booking at higher levels and uncertainties over upcoming macro-economic data like factory output — Index of Industrial Production (IIP) — for May and inflation figures for June.

“Nifty is currently trading firm and making a new intra-day high on buying support,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.

“Pharma sector stocks are facing resistance at higher levels due to profit booking. Most auto sector stocks are trading firm on lower levels buying.”

–IANS

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