Value buying, positive global cues lift equity markets

Mumbai, Oct 18: Value buying, coupled with broadly positive global indices and a strengthened rupee lifted the Indian equity markets during the mid-afternoon trade session on Tuesday.

Besides, higher global crude oil prices and hopes of healthy quarterly results supported the upward trajectory at the key indices. 

The wider 51-scrip Nifty of the National Stock Exchange (NSE) gained 125.90 points or 1.48 per cent to 8,646.30 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,656.89 points, traded at 27,957.02 points (at 2.00 p.m.) -- up 427.05 points or 1.55 per cent from the previous close at 27,529.97 points.

The Sensex has so far touched a high of 27,966.20 points and a low of 27,652.76 points during the intra-day trade.

The BSE market breadth was firmly in favour of the bulls -- with 1,850 advances and 826 declines.

On Monday, the Indian equity markets closed in the red due to lower earnings guidance from IT majors, along with heightened chances of a US rate hike and outflow of foreign funds.

The barometer index had declined by 143.63 points or 0.52 per cent to 27,529.97 points, while the NSE Nifty closed lower by 63 points or 0.73 per cent to 8,520.40 points.

"Positive global indices and value buying supported the upward movement at the equity markets," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"Higher global crude oil prices and an appreciation in rupee enhanced investors' risk-taking appetite."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls: "IT, banking and pharma stocks traded firm. However, oil-gas stocks faced resistance at higher levels due to profit booking."

"Media-entertainment, FMCG, cement and power stocks witnessed some recovery due to short covering. Bearish USD/INR futures prices are likely to support firm sentiments during the second half of the session."