Healthy inflows of foreign funds buoy equity markets

MUMBAI, May 10: Healthy inflows of foreign funds, along with value buying at lower levels and positive European indices, pushed the Indian equity markets higher on Tuesday.

The volatile trade session saw the key equity indices oscillate between the positive and negative zones before they ended on a positive note.

The wider 51-scrip Nifty of the tiol Stock Exchange (NSE) edged up by 21.75 points, or 0.28 per cent, at 7,887.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,682.98 points, closed at 25,772.53 points — up 83.67 points or 0.33 per cent from the previous close at 25,688.86 points.

The Sensex touched a high of 25,809.93 points and a low of 25,614.24 points during the intra-day trade.

The BSE market breadth was margilly tilted in favour of the bears with 1,334 declines and 1,277 advances.

Both the key indices had made substantial gains during the previous trade session on Monday. The barometer index had risen by 460.36 points or 1.82 per cent, while the NSE Nifty closed higher by 132.60 points or 1.71 per cent.

Initially during the day’s trade, the equity markets opened on flat-to-negative note in-sync with their Asian peers, especially the Chinese indices.Besides, investors were seen cautious ahead of the release of key domestic macro-economic data such as CPI (Consumer Price Index) and IIP (Index of Industrial Production).

However, markets rose on the back of value buying at lower levels and positive European indices. Healthy buying in capital goods, banks, healthcare and consumer goods stocks lifted prices.

In addition, a rebound in crude oil prices boosted investors’ sentiments.“The market closed on a positive note led by buying seen in the capital goods, healthcare and banks,” said Vaibhav Agarwal, vice president and research head at Angel Broking.

“A bout of volatility was witnessed as key benchmark indices recovered after trimming gains in mid-afternoon trade.” Agarwal added that the equity markets may remain volatile due to global cues.

According to And James, chief market strategist, Geojit BNP Paribas Fincial Services, recovery in crude oil prices, as well as Indian rupee boosted sentiments.

“Prospects of Japanese intervention, boosted risk appetite, and Indian stocks added to on yesterday’s sharp gains,” James said.

Both the foreign institutiol investors (FIIs) and domestic institutiol investors (DIIs) turned into net buyers during the day’s trade. Data with stock exchanges showed that the FIIs bought stocks worth Rs 328.59 crore, while the DIIs purchased scrip worth Rs 68.20 crore.

Sector-wise, healthy buying was witnessed in capital goods, banks and healthcare stocks, whereas automobile, metal and oil and gas scrip came under selling pressure.

The S&P BSE capital goods index surged by 198.03 points, followed by the bank index, which rose by 116.92 points; and the healthcare index gained by 81.14 points.

Conversely, the S&P BSE automobile index plunged by 161.18 points, followed by the metal index, which declined by 89.70 points; and the oil and gas index fell by 68.62 points. Major Sensex gainers during Tuesday’s trade were Dr.Reddy’s Lab, up 3.04 per cent at Rs 2,928.35; Axis Bank, up 2.22 per cent at Rs 487.85; Hindustan Unilever, up 1.93 per cent at Rs 862.45; Larsen and Toubro (L&T), up 1.87 per cent at Rs 1,318.60; and Gail, up 1.26 per cent at Rs 390.60.

Major Sensex losers were Tata Motors, down 3.58 per cent at Rs 388.90; NTPC, down 1.75 per cent at Rs 140.65; ONGC, down 1.65 per cent at Rs 208.10; Adani Ports, down 0.99 per cent at Rs 195 and Asian Paints, down 0.83 per cent at Rs 898.65. (IANS)