Value buying marginally lifts equity markets

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Mumbai, April 6 (IANS) The Indian equity markets on Wednesday traded mildly in the green, supported by value buying.

According to market analysts, value buying, along with healthy macro-economic data, marginally lifted prices during the mid-afternoon trade session.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) made marginal gains. It inched up by 11.45 points or 0.15 percent, to 7,614.65 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 24,978.86 points, traded at 24,898.24 points (at 1.45 p.m.) — up 14.65 points or 0.06 percent from the previous close at 24,883.59 points.

The Sensex touched a high of 25,000.65 points and a low of 24,858.05 points during the intra-day trade.

In contrast, the BSE market breadth was tilted in favour of bulls — with 1,480 advances and 884 declines.

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The barometer index had plunged on Tuesday. It had plummeted by 516.06 points or 2.03 percent, while the Nifty receded by 156 points or 2.01 percent.

On Wednesday, both the key indices of the Indian equity markets opened on a flat-to-positive note in-sync with their Asian peers.

Further, value buying, after Tuesday’s plunge, supported prices.

Besides, healthy macro-economic data on services PMI (purchasing managers’ index) restored investors’ risk taking appetite.

In addition, rise in crude oil prices cheered investors.

Even, the Tuesday’s 25 basis points cut in key lending rates by the Reserve Bank of India (RBI) gave a positive cue to the equity markets.

The rate cut was announced during RBI’s first bi-monthly monetary policy review for 2016-17.

However, the FOMC (Federal Open Market Committee) minutes expected to be released on late Wednesday evening and the start of the fourth quarter (Q4) results season capped gains.

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The FOMC minutes assume significance — as they can give vital cues to a likely US rate hike. A hike in the US interest rates is expected to lead away Foreign Portfolio Investors (FPIs) from emerging markets such as India.

“Value buying after yesterday’s correction and a rise in global crude oil prices restored investors’ risk taking appetite,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

“Positive PMI services data, too, buoyed sentiments.”

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