Global cues push Indian equity markets higher

Mumbai, June 28 Key Indian equity indices showed considerable recovery from last week's Brexit hangover to trade in the green during the mid-afternoon session on Tuesday, following global cues and a rebounding rupee.

Healthy buying was particularly witnessed in stocks of capital goods, fast moving consumer goods (FMCG) and healthcare.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,410.66 points, traded at 26,540.51 points (at 2 p.m.) -- up 137.55 points or 0.52 per cent from the previous close at 26,402.96 points.

It has touched a high of 26,583.33 points and a low of 26,378.46 points during the intra-day trade so far.

The BSE market breadth was skewed in favour of the bulls -- with 1,595 advances and 849 declines.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up to 8,134.60 points -- up 39.90 points or 0.49 per cent.

On Monday, the key indices had ended flat due to profit booking and an endeavour to recover from the Brexit. The barometer index inched up by 5.25 points or 0.02 per cent, while the Nifty was up 6.10 points, or 0.08 per cent.

Initially on Tuesday, the key indices opened on a flat note -- marginally in the green -- taking cues from the global markets.

The European markets have recovered slightly ahead of the commencement of a two-day European Council meet. However, investors remained cautious ahead of the GDP and consumer confidence data scheduled to be released later during the day.

The Asian markets were able to brush off some of their early losses that Brexit triggered. The pound has strengthened to give some momentum to the indices and stabilise the volatility Brexit caused in the global markets.

The rupee, after paring some losses and closing steady against the dollar on Monday, showed some recovery ahead of the F&O (Futures and Options) expiry of June contracts on Tuesday. Hopes of a healthy monsoon have also contributed to the behaviour of the markets.

However, the Indian markets are expected to remain cautious ahead of some major industrial data to be released during the week.

"The Indian markets have again taken cues from the global markets today (Tuesday). The rupee showed some strengthening earlier in the day. However it fell below its 68 (to the dollar) mark ahead of the F&O expiry today," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

“The markets have been able to recover from a day's low. The European markets have recovered ahead of the 2-day council meet today,” James added.