Positive global cues buoy equity markets
Mumbai, July 4 (IANS) Positive global cues, along with higher crude oil prices and firm rupee buoyed the Indian equity markets for the sixth consecutive session on Monday.
The key indices traded with appreciable gains to reach their new 2016 intra-day high levels, as healthy buying was witnessed in capital goods, oil and gas and metal stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 40.80 points or 0.49 per cent to 8,369.15 points.
Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE, too, traded higher. It opened at 27,314.44 points and traded at 27,282.70 points (at 1.45 p.m.) — up 137.79 points or 0.51 per cent from the previous close at 27,144.91 points.
It has so far touched a high of 27,385.66 points and a low of 27,279.25 points during the intra-day trade.
The BSE market breadth was skewed in favour of the bulls — with 1,662 advances and 914 declines.
The benchmark indices on last Friday had made new 2016 closing-high levels. The NSE Nifty edged up by 40.60 points or 0.49 per cent, whereas the barometer gained 145.19 points, or 0.54 per cent.
Initially on Monday, the key indices opened on a positive note, in sync with their Asian peers, especially the Chinese markets.
Besides, follow-up buying from last week’s strong close, higher global crude oil prices and a firm rupee supported the positive sentiment.
In addition, healthy progress of monsoon season enhanced investors’ risk-taking appetite.
However, gains were capped as some investors chose to book profits. Negative European markets and upcoming event risks, too, hampered the upward trajectory.
“Follow up buying from last week’s solid close, positive Asian markets and higher crude oil prices prompted the domestic indices to open on a firm note,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
“However, upcoming event risks and negative European markets have capped gains.”
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, lower USD/INR futures prices supported the firm sentiments.
“Banking and auto sector stocks are facing some profit booking at higher levels and traded with mix sentiments, while IT sector stocks traded firm on buying support.”
Nitasha Shankar, Senior Vice President for Research with YES Securities, said: “Indian markets are on a roll as mid and smallcap dominance continued and bulls refused to take a breather.”
“Market breadth continued to be strong, favouring the bulls. All sectoral indices barring the FMCG traded in the positive territory. PSU bank, realty and metal indices dominated in the trade.”