Strong rupee, buying support lifts Indian equities

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Mumbai, Jan 24 (IANS) Indian equities surged during the mid-afternoon trade session on Tuesday as rupee appreciation, coupled with positive Asian markets, lifted investors’ sentiments.

Healthy buying witnessed in the automobile, capital goods and oil and gas stocks lifted the key indices to trade with substantial gains of more than half a per cent each.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 45.10 points or 0.54 per cent, to 8,436.60 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,170.88 points, traded at 27,255.46 points (at 1.30 p.m.) — up 138.12 points or 0.51 per cent from the previous close at 27,117.34 points.

The Sensex has touched a high of 27,275.33 points and a low of 27,140.85 points during the intra-day trade so far.

The BSE market breadth was tilted in favour of the bulls — with 1,474 advances and 1,052 declines.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty maintained its morning gains and most of the sectors, barring FMCG, traded in the positive territory.

“The Indian rupee continued to hold on to its gain against the US dollar, whereas the US dollar index fell near seven week low as (President Donald) Trump formally withdrew the United States from the now 11-nation Pacific Rim Trans-Pacific Partnership (TPP), distancing America from its Asian allies,” Desai told IANS.

“Looking at the market volume and rollover data, it seems there might not be heavy volatility tomorrow (on Wednesday) during F&O (futures and options) expiry.”

On Monday, the benchmark indices were lifted by healthy buying and hopes of budgetary incentives.

The NSE Nifty rose by 42.15 points or 0.50 per cent, to 8,391.50 points, while the BSE Sensex was up 82.84 points or 0.31 per cent.

–IANS

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