Mumbai, July 16 (IANS) A day after it gained more than 265 points, a benchmark index of the Indian equity markets was trading 0.65 percent up during the mid-afternoon trade session on Thursday.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) was trading with gains of more than 184 points or 0.65 percent during the session under review.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made gains during the mid-afternoon trade session. It was trading with gains of 63 points or 0.74 percent at 8,586.85 points.
The S&P BSE Sensex, which opened at 28,259.70 points, was trading at 28,382.89 points (at 1.35 p.m.), up 184.60 points or 0.65 percent from the previous day’s close at 28,198.29 points.
The Sensex touched a high of 28,413.17 points and a low of 28,245.81 points in the intra-day trade.
“The expectations of a rate cut by the Reserve Bank of India (RBI) is still strong. Key data points such as Index of Industrial Production (IIP), Consumer Price Index (CPI) and Wholesale Price Index (WPI) have broadly come in line with the market’s estimates,” Anand James, co-head, technical research desk, Geojit BNP Paribas, told IANS.
According to James, after the Iran nuclear deal, global crude oil prices are also on the downside. This is a good sign for India which is one of the largest importers of Iranian crude oil.
“Our exports to Iran will also benefit. Added to this, the prospects of cheaper crude oil will vastly benefit a major net-importer of crude like India,” James elaborated.
Industry experts expect oil prices to plunge as and when Iran resumes exporting oil at the pre-sanction levels. The west Asian state is believed to have around 25-30 million barrels of oil ready for export.
After Tuesday’s massive volatility, Brent index stood at $57 and the West Texas Intermediate (WTI) at $52 per barrel on Thursday. WTI had fallen to $44 per barrel on Tuesday.
James added that investor-anxiety over the US rate hike was calmed after initial comments made during the US Fed Chairman’s testimony to the US Congress suggested a delay in the rate hike decision.
During Thursday’s trade so far, all of the 12 sector-based indices of the S&P BSE were trading higher.
The S&P BSE bank index soared by 374.76 points, healthcare index augmented by 105.18 points, the oil and gas index jumped by 109.72 points, consumer durables index was higher by 95.37 points, and the capital goods index rose by 61.78 points.