Value buying buoys equity markets (Roundup)

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Mumbai, May 5 (IANS) Value buying, along with expectations that key economic legislation will get parliamentary approval, as well as positive European indices, buoyed the Indian equity markets on Thursday.

Besides, forecast of healthy monsoon rains and higher crude oil prices helped the key indices to break three consecutive days of losses and end with substantial gains.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged higher by 29 points, or 0.38 percent, at 7,735.50 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,187.66 points, closed at 25,262.21 points — up 160.48 points or 0.64 percent from the previous close at 25,101.73 points.

The Sensex touched a high of 25,394.10 points and a low of 25,162.94 points during the intra-day trade.

In contrast, the BSE market breadth was tilted in favour of the bears — with 1,320 declines and 1,229 advances.

Both the key Indian indices had ended in negative territory during the previous trade session on Wednesday. The barometer index had declined by 127.97 points or 0.51 percent. Similarly, the NSE Nifty had closed lower by 40.45 points or 0.52 percent.

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Initially, the key indices opened on a positive note on Thursday, as value buying supported prices. Value buying was triggered due to attractive valuations after three consecutive sessions of losses.

During the last three sessions, Sensex had lost over 500 points, while the Nifty declined by 143.25 points.

Furthermore, the prediction of healthy monsoon rains by international weather forecasters and higher crude oil prices cheered investors.

In addition, investors’ sentiments were boosted after the Lok Sabha passed the Finance Bill 2016 with 55 amendments. This improved the potential for other key economic legislation getting the green signal and added to the positive vibes.

However, the gains were capped due to negative Asian markets and caution ahead of the release of US non-farm payrolls data on Friday.

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“Value buying at lower levels after three consecutive days of falls supported prices,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

“Forecast of healthy monsoon rains and expectations that key bills will get passed through parliament added to the positive sentiment.”

According to Vaibhav Agarwal, vice president and research head at Angel Broking, Indian indices ended in the green supported by positive European markets.

“Going forward, the Finance Bill 2016, which was passed in the Lok Sabha today, will help to build confidence among investors,” Agarwal said.

During the day’s trade, the foreign institutional investors (FIIs) were net sellers, while the domestic institutional investors (DIIs) turned net buyers.

Data with stock exchanges showed that FIIs sold stocks worth Rs.388.51 crore, whereas the DIIs purchased scrips worth Rs.251.79 crore.

Sector-wise, healthy buying was witnessed in capital goods, automobile and FMCG (Fast Moving Consumer Goods) stocks. However, scrips of consumer durables, telecom, and oil and gas came under intense selling pressure.

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The S&P BSE capital goods index surged by 208.57 points, followed by the automobile index, which rose by 102.39 points; and the FMCG index gained by 62.70 points.

In contrast, the S&P BSE consumer durables index receded by 53.27 points, followed by the telecom index, which declined by 24.12 points; and the oil and gas index fell by 15.08 points.

Major Sensex gainers during Thursday’s trade were HDFC Bank, up 2.90 percent at Rs.1,163.85; BHEL, up 2.55 percent at Rs.122.85; Tata Motors, up 2.46 percent at Rs.391.20; Larsen & Toubro (L&T), up 2.20 percent at Rs.1,273.45; and Lupin, up 1.71 percent at Rs.1,605.30.

Major Sensex losers were Adani Ports, down 4.33 percent at Rs.198.65; Bharti Airtel, down 1.55 percent at Rs.355.20; Asian Paints, down 0.55 percent at Rs.868.35; Hindustan Unilever (HUL), down 0.29 percent at Rs.851.15; and Reliance Industries, down 0.25 percent at Rs.975.05.



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