Mumbai, June 15 (IANS) Value buying, along with hopes on passage of key economic legislation and key cabinet decisions lifted the Indian equity markets on Wednesday.
Consequently, the benchmark indices closed the day’s trade on a positive note after four consecutive sessions of losses.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) surged by 97.75 points or 1.21 per cent, at 8,209 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,500.79 points, closed at 26,726.34 points — up 330.63 points or 1.25 per cent from the previous close at 26,395.71 points.
The Sensex touched a high of 26,752.59 points and a low of 26,446.59 points during the intra-day trade.
In contrast, the BSE market breadth was skewed in favour of the bears — with 1,545 declines and 953 advances.
Both the key Indian indices had ended on a lower note during the previous trade session on Tuesday. The barometer index had slipped by 1.06 points, while the NSE Nifty had dipped by 1.75 points or 0.02 per cent.
Initially on Wednesday, the markets had opened on a positive note, in sync with their Asian peers.
Besides, value buying, short covering and increased chances of the GST (Goods and Services Tax) bill getting passed through the parliament during monsoon session supported prices.
In addition, an appreciation in the rupee’s value restored investors risk taking appetite.
The Indian rupee strengthened by 13 paise during the day’s trade. It closed at 67.14-15 against a US dollar from its previous close of 67.27-28 to a greenback.
Furthermore, key cabinet decisions on civil aviation and banking sector gave investors further incentive to chase prices.
However, lower crude oil prices and the US FOMC’s (Federal Open Market Committee) rate setting meet panicked investors and capped gains.
“Value buying after four consecutive days of falls triggered short covering which supported prices,” Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS.
“Positive Asian markets, announcements on GST, key cabinet decisions and a stronger rupee restored investors’ confidence,” he added.
Dhruv Desai, Director and Chief Operating Officer of Tradebulls said that Nifty opened on a firm note tracking positive global cues. It was also supported by an appreciation in Indian rupee against US dollar and positive opening of European markets.
“Aviation sector stocks traded firm supported by clearance of a new aviation policy given by Cabinet,” Desai pointed out.
According to Nitasha Shankar, Senior Vice President for Research with YES Securities, broader markets ended in the green but underperformed the headline indices.
“PSU bank continued to gain strength; IT and FMCG indices witnessed short covering rally in late trade to end in the green,” Shankar noted.
In terms of investments, the foreign institutional investors (FIIs) were net sellers during the day’s trade, while the domestic institutional investors (DIIs) turned net buyers.
Data with stock exchanges showed that the FIIs sold stocks worth Rs 108.23 crore, whereas DIIs purchased scrip worth Rs 234.10 crore.
Sector-wise, all the 19 sub-indices witnessed healthy buying, led by capital goods, banking, automobile, oil and gas, and information technology (IT) stocks.
The S&P BSE capital goods index accelerated by 328.77 points, followed by the banking index, which soared by 280.18 points; the automobile index increased by 160.50 points, the oil and gas index rose by 106.55 points and the IT index gained by 102.26 points.
Major Sensex gainers during Wednesday’s trade were State Bank of India (SBI), up 3.90 per cent at Rs 215.65; NTPC, up 3.88 per cent at Rs 153.95; Larsen and Toubro (L&T), up 3.38 per cent at Rs 1,509.95; Bharti Airtel, up 2.82 per cent at Rs 351.80; and Maruti Suzuki, up 2.50 per cent at Rs 4,207.10.
Major Sensex losers during the day’s trade were Dr.Reddy’s Lab, down 0.35 per cent at Rs 3,085.10; Axis Bank, down 0.35 per cent at Rs 528.50; Adani Ports, down 0.22 per cent at Rs 207.40; Sun Pharma, down 0.14 per cent at Rs 751.65.