Value buying propels markets; Sensex closes 170 points up

Mumbai, Dec 15   Value-buying propelled a barometer index of the Indian equity markets into provisionally closing with gains of 170 points on Tuesday.

Initially, both the bellwether indices of the Indian equity markets opened on a slightly positive note in sync with their Asian peers and a rebound in oil prices that supported energy stocks.

Nevertheless, latest figures showing a firming up trend in annual wholesale and retail inflation weighed on the markets which ceded their marginal gains.

In addition, Finance Minister Arun Jaitley's comments which indicated a washout of winter session due to parliamentary logjam subdued sentiments. The logjam will delay the passage of key economic legislations like the Goods and Services Tax (GST) bill. 

Should the bill not secure clearance in this session, it will miss its intended roll-out date of April 1 next year.

Besides the GST, investors were cautious ahead of the US Fed's Federal Open Market Committee (FOMC) meet slated for Tuesday-Wednesday.

The FOMC will decide whether or not to raise interest rates in the US. A hike in interest rates which have been at near-zero levels since the last decade will lead to a massive pull-back of foreign funds from emerging economies like India. 

It is also expected to dent business margins as access to capital from the US will become expensive.

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

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) provisionally closed the day's trade up by 170 points. 

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) ended the day's trade in the green. It closed higher by 44 points or 0.57 percent at 7,693.60 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,186.68 points, provisionally closed at 25,320.44 points (at 3.30 p.m.) -- up 170.09 points or 0.68 percent from the previous day's close at 25,150.35 points.

The Sensex touched a high of 25,342.78 points and a low of 25,075.54 points during the intra-day trade.