Mumbai, May 25 (IANS) Positive global cues, coupled with value buying, surged the Indian equity markets on Wednesday.
Consequently, the key indices made healthy gains during the mid-afternoon trade session as buying was witnessed in banks, automobile, capital goods, oil and gas and information technology (IT) stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 158.10 points or 2.04 percent, at 7,906.95 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,432.10 points, traded at 25,788.84 points (1.55 p.m.) — up 483.37 points or 1.91 percent from the previous close at 25,305.47 points.
The Sensex touched a high of 25,792.99 points and a low of 25,430.59 points during the intra-day trade.
The BSE market breadth was skewed in favour of the bulls — with 1,533 advances and 868 declines.
Both the key Indian indices had ended on a positive note during the previous trade session on Tuesday.
The barometer index had risen by 75.11 points or 0.30 percent, while the NSE Nifty had inched up by 17.80 points or 0.23 percent.
In terms of broader markets, the midcap and smallcap indices were up by around one percent each.
Initially, the key indices opened on a higher note, in-sync with their Asian peers, which rose on the back of positive macro-economic data from the US.
The US data showed signs of a healthy economic recovery.
Besides, higher crude oil prices, positive European indices and a stable rupee restored investors’ confidence.
In addition, value buying at key levels and predictions of better-than-expected monsoon rains supported prices.
“Positive US macro-economic data and subsequent rise in the US stocks helped Asian and domestic markets to rise. Value buying and predictions of healthy monsoon rains supported prices,” Anand James, chief market strategist at Geojit BNP Paribas Financial Services, told IANS.
Dhruv Desai, director and chief operating officer of Tradebulls, pointed out that Nifty50 continued to trade in range of 300 points.
“Earnings season continues to generate stock specific actions. Morgan Stanley also upgraded India to overweight from equal weight adding the positive sentiment for our market,” Desai said.
According to Nitasha Shankar, senior vice president for research with YES Securities, broader markers underperformed the headline indices.
“All sectorial indices are trading in the positive territory. Bank and IT indices are leading the charge with gains of 2.5 percent. Barring Cipla all Nifty stocks are trading in the green,” Shankar said.