Value buying lifts equity markets to new closing highs (Roundup)

Mumbai, Sep 8 (IANS) Value buying at lower levels, healthy quarterly results, consistent buying by foreign funds and a rise in global crude oil prices buoyed the Indian equity markets on Thursday.

Both the key indices made new closing highs. The wider 51-scrip Nifty of the National Stock Exchange (NSE) touched its new 18-month closing high, whereas the 30-scrip sensitive index (Sensex) of the BSE advanced to its new 17-month closing high and a 52-week intra-day high.

The NSE Nifty edged up by 34.55 points or 0.39 per cent to 8,952.50 points.

The S&P BSE Sensex which opened at 28,929.46 points, closed at 29,045.28 points — up 118.92 points or 0.41 per cent from the previous close at 28,926.36 points.

The Sensex touched a high of 29,077.28 points and a low of 28,854.56 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,603 advances and 1,167 declines.

On Wednesday, both the key Indian indices closed flat due to profit booking and caution on the eve of the ECB (European Central Bank) meeting.

The barometer index had edged down by 51.66 points or 0.18 per cent, while the NSE Nifty slipped by 25.05 points or 0.28 per cent.

Initially on Thursday, the benchmark indices opened on a flat-to-negative note due to mixed global cues.

The global markets traded mixed as caution prevailed ahead of the ECB’s monetary policy decision later on Thursday, which could provide clues on global liquidity.

Further, profit-booking at higher levels led the indices to cap gains.

Nevertheless, value buying at lower levels, healthy quarterly results and a rise in global crude oil prices arrested the decline of the indices.

However, the rupee weakened by four paise to 66.42 against a US dollar from its previous close of 66.38 to a greenback.

“Value buying at lower levels, healthy quarterly results, consistent inflows from foreign investors and SIAM’s (Society of Indian Automobile Manufacturers) upward revision of growth led the rise in the equity markets,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

“However, cloud over IT stocks, profit-booking and the upcoming ECB meet capped gains.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty pared its losses in the second half of the session.

“Banking, pharma and auto stocks traded with firm sentiments, while aviation stocks traded down but got some support of lower crude oil prices at lower levels which limited the downside,” Desai added.

“Lower USD/INR futures prices provided support to the Nifty at lower levels and helped to trade firm in second half of the session.”

In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) purchased stocks worth Rs 854.06 crore, whereas the domestic institutional investors (DIIs) divested scrips worth Rs 768.55 crore.

Sector-wise, the S&P BSE healthcare index gained by 359.54 points, followed by the automobile index, which surged 209.67 points, and the consumer durables index gained 151.39 points.

On the other hand, the S&P BSE IT index plunged 259.09 points, the technology, entertainment and media (TECK) index declined by 103.46 points, and the banking index fell by 9.29 points.

Major Sensex gainers during Thursday’s trade were: Sun Pharmaceuticals, up 3.69 per cent at Rs 808.20; Bajaj Auto, up 3.51 per cent at Rs 3,090.55; Tata Steel, up 3.32 per cent at Rs 402.90; Maruti Suzuki, up 2.71 per cent at Rs 5,482.40; and Lupin, up 2.44 per cent at Rs 1,579.40.

Major Sensex losers were: Tata Consultancy Services (TCS), down 5.14 per cent at Rs 2,321.15; Gail, down 1.92 per cent at Rs 388.90; Wipro, down 1.77 per cent at Rs 473.60; Infosys, down 1.62 per cent at Rs 1,037.90; and NTPC down 0.96 per cent at Rs 159.50.

–IANS

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