Mumbai, May 12 (IANS) Value buying and parliamentary approval for key economic legislation buoyed the Indian equity markets on Thursday.
Consequently, the key indices of the Indian equity markets traded in the green during the mid-afternoon trade session.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 36.85 points or 0.47 percent, at 7,885.70 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,684.60 points, traded at 25,717.25 points (at 2.00 p.m.) — up 120.23 points or 0.47 percent from the previous close at 25,597.02 points.
The Sensex has so far touched a high of 25,827.03 points and a low of 25,620.27 points during the intra-day trade.
The BSE market breadth was tilted in favour of the bulls – with 1,458 advances and 982 declines.
Both the key Indian indices had ended in the red during the previous trade session on Wednesday. The barometer index had edged lower by 175.51 points or 0.68 percent, while the NSE Nifty had closed down by 38.95 points or 0.49 percent.
Initially, the equity markets opened on a positive note, a day after parliament passed key economic legislation.
The Rajya Sabha on Wednesday had passed the Insolvency and Bankruptcy Code 2016, which is seen as a key reform that will encourage entrepreneurship.
Besides, value buying was triggered due to attractive prices from Wednesday’s correction.
However, gains were capped as investors were seen cautious ahead of the release of key domestic macro-economic data such as CPI (Consumer Price Index) and IIP (Index of Industrial Production).
“Yesterday’s correction made prices attractive which triggered value buying and supported the markets’ upward movement,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.
“Investors confidence was restored after the Rajyah Sabha passed key economic legislation.”
According to Nitasha Shankar, senior vice president for research with YES Securities,
most of the indices gave up their morning gains led by marginal profit booking.
“Reality is leading the bull charge followed by IT, bank and auto indices,” Shankar noted.
“Media and FMCG are marginally in the red.”