Value buying buoys markets, Sensex up 83 points (Third lead)

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Mumbai, Jan 8 (IANS) Value buying, coupled with positive Asian indices and hopes of political consensus over key economic legislations, buoyed Indian equity markets on Friday.

This resulted in the barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) provisionally ending the day’s trade up 83 points, a day after it touched a new 52-week low.

During the last four sessions, the barometer Sensex has plunged by 1,309.51 points, while the wider 50-scrip Nifty of the National Stock Exchange (NSE) has lost 395.35 points.

On Friday, both the bellwether indices opened on a positive note in sync with their Asian peers.

Asian markets gained after China decided to put quick-fixes to its falling markets such as the suspension of the circuit-breaker system which halted trading twice this week.

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The Chinese administration raised the guidance rate for the yuan and asked state-controlled funds to buy equities.

It was a rout in the Chinese markets which cascaded into a global sell-off on Thursday.

Furthermore, the recovery rally in the Indian equity markets was supported by value buying, as a sizeable number of stocks were trading at their yearly lows after four consecutive sessions of slide.

In addition, the central government’s effort to reach out to the opposition to break the impasse on the Goods and Services Tax (GST) Bill restored investors’ confidence.

The positive bias was even supported by fact that international oil prices had tumbled to levels below $30 per barrel.

Moreover, data indicating a strengthening US jobs market cheered investors.

However, the gains were capped by the long-liquidation positions and the upcoming US non-farm payroll figures scheduled for release on Friday evening India time.

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The US data can provide indications on future US rate hikes.

Besides, caution prevailed over the upcoming domestic macro-data on industrial output, retail inflation and the third-quarter earning results which start coming in from January 12.

The barometer S&P BSE Sensex closed 83 points, or 0.33 percent higher.

Similarly, the wider NSE Nifty ended the day’s trade in the green. It closed higher by 33.05 points, or 0.44 percent at 7,601.35 points.

The Sensex of the S&P BSE, which opened at 24,969.02 points, provisionally closed at 24,934.33 points (at 3.30 p.m.) — up 82.50 points, or 0.33 percent from the previous day’s close at 24,851.83 points.

The Sensex touched a high of 25,083.55 points and a low of 24,887.22 points in intra-day trade.

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The S&P BSE market breadth favoured the bulls — with 1,945 advances and 814 declines.

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