Value buying propels markets through volatility, Sensex up 106 points (Roundup)

Mumbai, Dec 14 (IANS) Volatility prevailed at the Indian equity markets on Monday, even as value buying and healthy macro data propelled a barometer index to gain 106 points during the day’s trade.

Initially, both the bellwether indices of the Indian equity markets opened on a negative note in sync with their Asian peers and concerns about the parliamentary logjam that has hindered the passage of key economic legislations.

Nevertheless, both the indices soon rose on the back of healthy figures for the index of industrial production (IIP) which were released after market hours on last Friday.

However, the choppy session weighed on markets which ceded their gains due to a mid-session correction in banking and auto stocks.

Besides, investors were cautious ahead of the release of retail inflation data and the upcoming US Federal Reserves’ Federal Open Market Committee (FOMC) meet slated for Wednesday.

The FOMC will decide whether or not to raise interest rates in the US.

Notwithstanding the downward trajectory, markets again rose on the back of value buying.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed the day’s trade up by 106 points.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) closed in the green. It ended higher by 40 points or 0.52 percent at 7,650.05 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 24,935.60 points, closed at 25,150.35 points — up 105.92 points or 0.42 percent from the previous day’s close at 25,044.43 points.

The Sensex touched a high of 25,194.15 points and a low of 24,867.73 points during the intra-day trade.

“Value buying and healthy IIP data helped markets make gains after opening lower,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

“With much of negativity already being priced in, markets rise looks to be expectantly pricing in more clarity in money flow, once FOMC decision is in.”

Nitasha Shankar, vice president for Research with YES Securities, said that benchmark index Nifty pulled back in late trade due to an intra-day correction led by short coverings in banking and auto stocks.

“Broader markets outperformed marginally with 1,500 advances and 1,139 declines. Constant rise in Indian VIX (volatility index) suggests sustained volatility in our markets in the coming trading sessions,” Shankar told IANS.

“All major sectors witnessed buying interest, barring the energy and (public sector undertaking) PSU bank indices.”

The foreign institutional investors (FIIs) were net sellers in the day’s trade, whereas the domestic institutional investors (DIIs) were net buyers.

According to data with stock exchanges, FIIs sold stocks worth Rs.157.07 crore, while DIIs invested Rs.386.47 crore.

Sector-wise, healthy buying was witnessed in metal, healthcare and information technology (IT) sectors.

On the other hand, capital goods, oil and gas and realty scrip ended in the red during the day’s trade.

The S&P BSE metal index augmented by 165.60 points, healthcare index gained by 115.07 points and IT index was higher by 88.85 points.

The S&P BSE capital goods index receded by 21.23 points, oil and gas index was lower by 12.67 points and realty index slipped by 2.35 points.

Major Sensex gainers during Monday’s trade were Hindalco Industries, up 3.01 percent at Rs.78.60; Coal India, up 2.62 percent at Rs.315.70; Hindustan Unilever, up 1.98 percent at Rs.837.20; Maruti Suzuki, up 1.97 percent at Rs.4,569.80; and Mahindra and Mahindra (M&M), up 1.96 percent at Rs.1,287.

The major Sensex losers were Axis Bank, down 2.02 percent at Rs.430.90; Tata Motors, down 1.65 percent at Rs.371.70; Bharti Airtel, down 1.03 percent at Rs.306.15; ONGC, down 0.95 percent at Rs.213.45; and Larsen and Toubro (L&T), down 0.77 percent at Rs.1,274.45.

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