Positive global cues lift equity markets

Mumbai, May 26 (IANS) Positive global cues, along with fresh influx of foreign funds and a rise in global crude oil prices, lifted the Indian equity markets on Thursday.

Besides, healthy quarterly results and a strong rupee pushed both the key benchmark indices to their new highest monthly levels.

The key indices made substantial gains during the mid-afternoon trade session as healthy buying was witnessed in capital goods, banks and automobile stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 88.95 points or 1.12 percent, at 8,023.85 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,008.25 points, traded at 26,211.19 points (at 2.15 p.m.) — up 330.02 points or 1.28 percent from the previous close at 25,881.17 points.

The Sensex has so far touched a high of 26,226.74 points and a low of 25,941.51 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,304 advances and 1,142 declines.

The key indices had closed the previous day’s trade with healthy gains. The barometer index had surged by 575.70 points or 2.28 percent, while the NSE Nifty had risen by 186.05 points or 2.40 percent.

In terms of broader markets, the midcap and smallcap indices gained more than half a percent each.

Initially on Thursday, the key indices opened on a higher note, in-sync with their Japanese peers, and a positive close to the US markets on Wednesday.

The domestic indices moved on their upward trajectory aided by positive global cues eminating out of US and Europe.

Besides, value buying and fresh influx of foreign funds helped domestic indices surge.

In addition, higher crude oil prices and a strong rupee cheered investors.

“Positive global cues, rise in crude oil prices, and a strong rupee helped the buying momentum to continue,” Anand James, chief market strategist at Geojit BNP Paribas Financial Services, told IANS.

According to Nitasha Shankar, senior vice president for research with YES Securities, broader markets also traded higher in line with the headline indices.

“The PSU bank index is outperforming other sectorial indices with gains in excess of one percent,” Shankar said.

“The market can turn volatile in late trade owing to F&O (Futures and Options) expiry session.”



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