Sensex Soars 521 Pts On Value Buying, Positive Global Cues; Nifty Above 8,670 

18 Oct, 2016 16:49 IST|Sakshi
The market barometer 30-scrip sensitive index ended the session at 28,050.88 points up 520.91 points or 1.89 per cent from the previous close at 27,529.97 points. The wider Nifty gained 157.50 points or 1.85 per cent to 8,677.90 points. IT, banking a

Mumbai: Value buying coupled with broadly positive global indices and a strengthened rupee lifted the Indian equity markets on Tuesday. Besides, higher global crude oil prices and hopes of healthy quarterly results supported the upward trajectory at the key indices. Sensex started upward journey from mid session onwards. The market barometer 30-scrip sensitive index ended the session at 28,050.88 points up 520.91 points or 1.89 per cent from the previous close at 27,529.97 points. The wider Nifty gained 157.50 points or 1.85 per cent to 8,677.90 points.

Continuing upward movement for the second session, bank stocks such as SBI and ICICI rallied on the domestic bourses on expectation that Essar Group would use the proceeds from the sale of its oil business to repay its debt. Logistics, Capital Goods companies gained momentum ahead of the Goods and Services Tax (GST) council meeting that begins later on Tuesday. The government plans to implement GST by April 2017.

Opened at 27,656.89 points on a strong note with a gap up of 136 points, Sensex sustained the early gains in the morning session and later continued to move northwards during the second half. Sensex recorded a high of 27,966.20 points and a low of 27,652.76 points during the intra-day trade.

The BSE market breadth was firmly in favour of the bulls with 1,884 shares advanced, 949 shares declined and 206 shares were unchanged.

On Monday, the Indian equity markets closed in the red due to lower earnings guidance from IT majors, along with heightened chances of a US rate hike and outflow of foreign funds. The barometer index had declined by 143.63 points or 0.52 per cent to 27,529.97 points, while the NSE Nifty closed lower by 63 points or 0.73 per cent to 8,520.40 points.

Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, said: "Positive global indices and value buying supported the upward movement at the equity markets. Higher global crude oil prices and an appreciation in rupee enhanced investors' risk-taking appetite."

Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said: "IT, banking and pharma stocks traded firm. However, oil-gas stocks faced resistance at higher levels due to profit booking. Media-entertainment, FMCG, cement and power stocks witnessed some recovery due to short covering. Bearish USD/INR futures prices are likely to support firm sentiments during the second half of the session."

Rupee Rebounds By 12 Paise

The rupee appreciated 12 paise to 66.76 against the US dollar on Tuesday as it was propped up by fresh selling of the American currency by exporters and banks amid a higher opening in the domestic stock market. According to dealers, weakness in the dollar against other currencies overseas on unexpected fall in a US manufacturing index made the rupee stronger. The local currency received a shot in the arm after stocks started the day on a positive note. On Monday, the rupee had ended lower by 17 paise at 66.88 due to heavy dollar demand from importers and corporates.

The Reserve Bank of India (RBI) fixed the reference rate of the rupee at 66.7268 against the US dollar and 73.5463 for the euro. The corresponding rates were 66.7779 and 73.3689, respectively on Monday. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 81.7136 and 64.14 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon. The SDR-rupee figure will be based on this rate, the statement added.

The rupee appreciated 12 paise to 66.76 against the US dollar on Tuesday as it was propped up by fresh selling of the American currency by exporters and banks amid a higher opening in the domestic stock market.

The dollar took a breather from its recent gains on Tuesday, edging away from seven-month highs against a currency basket as investors took stock of US interest rate expectations in coming months. The dollar index, which tracks the greenback against six major rivals, slipped 0.2 per cent to 97.711, after rising as high as 98.169 in the previous session, its highest since March 10.

Source: IANS/ PTI

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