Mumbai, May 24 (IANS) Value buying, along with positive European indices, pushed the Indian equity markets higher on Tuesday.
Consequently, key indices traded in the green during the mid-afternoon session, as healthy buying was witnessed in automobile and fast moving consumer goods (FMCG) stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 14.50 points or 0.19 percent, at 7,745.55 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,256.97 points, traded at 25,291.14 points (at 2.00 p.m.) — up 60.78 points or 0.24 percent from the previous close at 25,230.36 points.
The Sensex has so far touched a high of 25,336.44 points and a low of 25,181.47 points during the intra-day trade.
In contrast, the BSE market breadth was skewed in favour of the bears — with 1,564 declines and 797 advances.
Both the key Indian indices had ended on a lower note during the previous trade session on Monday.
The barometer index had fallen by 71.54 points or 0.28 percent, while the NSE Nifty had slipped by 18.65 points or 0.24 percent.
Initially, the key indices opened on a flat note, depressed by weak Asian markets, which were impacted by negative macro-economic data from Japan.
The domestic markets soon receded on the back of risk-aversion on the renewed fears of a US rate hike in June. A hike is expected to lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.
This had led to an outflow of foreign funds from the domestic equity markets on Monday.
Besides, investors were seen reluctant to chase prices higher due to the upcoming F&O (futures and options) expiry and a weak rupee.
However, the key indices pared some of their losses on the back of value buying at key levels.
In addition, positive European indices restored investor confidence and supported prices.
“Negative Asian indices, along with renewed fears of a US rate hike in June and a weak rupee had initially depressed the Indian markets,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.
“However, value buying at key levels and positive European markets supported prices and helped equity markets pare some of their losses.”