Value buying, global cues lift equity markets

Mumbai, April 11 (IANS) Value buying, along with positive global cues and firm crude oil prices, buoyed the Indian equity markets on Monday.

Consequently, key indices of the Indian equity markets made healthy gains during the late-afternoon trade session.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) edged higher by 40.30 points or 0.53 percent, to 7,595.50 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 24,789.40 points, traded at 24,787.46 points (at 2.30 p.m.) — up 114 points or 0.46 percent from the previous close at 24,673.84 points.

The Sensex touched a high of 24,853.59 points and a low of 24,523.20 points during the intra-day trade.

The BSE market breadth was tilted in favour of bulls — with 1,353 advances and 1,109 declines.

The barometer index had closed flat on Friday. It inched down by 12 points or 0.05 percent.

On Monday, both the key indices opened on a firm note, on the back of a rebound in global crude oil prices and positive Chinese markets.

Further, value buying after last week’s correction lifted prices.

The barometer index had plunged by 596 points or 2.35 percent during last week. Similarly, the NSE Nifty had receded by 157.85 points or 2.04 percent.

However, the initial gains were ceded as unwinding of long positions ahead of the fourth quarter (Q4) results season dented sentiments.

The Q4 results season started from April 8. Infosys is expected to be the first bluechip firm to come out with its results on April 15.

Besides, caution ahead of key global and domestic macro-economic data deterred investors’ from chasing prices.

The week ahead will disclose global macro-economic data, such as the March inflation figures from China, European countries and the US.

In addition, the domestic macro-economic data will start from April 12, with the release of the Index of Industrial Production (IIP) and retail inflation (Consumer Price Index) figures.

“Value buying ahead of the Q4 results and positive global crude oil prices lifted prices. Positive European and Chinese indices, too, supported the equity markets’ rise,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

“However, caution ahead of the Q4 results and the macro-economic data dented sentiments.”

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