Positive global cues buoy Indian equities

Mumbai, Nov 18, 2016: Positive global cues, coupled with short covering and value buying, lifted the Indian equity markets during the mid-afternoon trade session on Friday.

Healthy buying was witnessed in healthcare, automobile and oil and gas stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 25.15 points or 0.31 per cent to 8,105.10 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,270.20 points, traded at 26,321.91 points (at 1.30 p.m.) — up 94.29 points or 0.36 per cent from the previous close at 26,227.62 points.

The Sensex has so far touched a high of 26,349.02 points and a low of 26,117.82 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,397 advances and 987 declines.

On Thursday, the Indian equity markets had closed in the red on the back of worries over a possible US rate hike and lower crude oil prices.

The barometer index was down by 71.07 points or 0.27 per cent, whereas the NSE Nifty edged lower by 31.65 points or 0.39 per cent.

“Markets are rangebound and trading slightly in the positive today. The Asian markets traded flat because the dollar has moved higher,” Astha Jain, Senior Research Analyst at Hem Securities, told IANS.

“The dollar has moved up after US Fed Chairman Janet Yellen in her speech on Thursday evening signalled a possible rate hike in December.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded firm due to short covering.

“IT and banking stocks witnessed good recovery from lower levels, while pharma, auto, oil-gas, textile and aviation stocks traded firm on buying support,” Desai said.

“Media-entertainment and FMCG stocks traded with mixed sentiments due to short covering, while power and cement stocks traded firm on buying support at lower levels.”


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