Mumbai, May 5 (IANS) Value buying, along with expectations that key economic legislation will get parliamentary approval, buoyed the Indian equity markets on Thursday.
This led to key indices of the Indian equity markets making substantial gains during the late-afternoon trading session. The rise in equity markets was seen after three consecutive sessions of losses.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged higher by 53.20 points, or 0.69 percent, at 7,759.75 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,187.66 points, traded at 25,358.96 points (at 2.40 p.m.) — up 257.23 points or 1.02 percent from the previous close at 25,101.73 points.
The Sensex has so far touched a high of 25,394.10 points and a low of 25,162.94 points during the intra-day trade.
The BSE market breadth was tilted in favour of the bulls — with 1,257 advances and 1,189 declines.
Both the key Indian indices had ended in the negative territory during the previous trade session on Wednesday. The barometer index had declined by 127.97 points or 0.51 percent.
Similarly, the NSE Nifty had closed lower by 40.45 points or 0.52 percent.
Initially, the key indices opened on a positive note, as value buying at lower levels after three consecutive sessions of losses supported prices.
During the last three sessions, Sensex lost over 500 points, while the Nifty declined by 143.25 points.
Besides, forecast of healthy monsoon rains from international weather forecasters and higher crude oil prices cheered investors.
However, the gains were capped due to negative global markets and caution ahead of the release of US non-farm payrolls data.
In addition, disappointing fourth quarter (Q4) results dented sentiments.
“Value buying at lower levels after three consecutive days of falls supported prices,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.
“Forecast of healthy monsoon rains and expectations that key bills will get passed through parliament, added to the positive sentiment.”
According to Nitasha Shankar, senior vice president for research with YES Securities, broader markets traded in the positive territory in line with the headline indices.
“Reality, auto, pharma, FMCG and banking indices are leading the markets higher,” Shankar noted.