Expectations of budgetary sops, healthy Q3 results lift equities

Mumbai, Jan 12 : Anticipation of healthy quarterly earnings’ results and budgetary sops, coupled with a strengthened rupee buoyed the Indian equities markets during the mid-afternoon trade session on Thursday.

Both the key indices traded in the green, as healthy buying was witnessed in capital goods, IT and TECK (technology, media and entertainment) stocks.

However, negative European indices and caution ahead of the release of the Index of Industrial Production (IIP) and Consumer Price Index (CPI) data for December capped gains.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 15.25 points or 0.18 per cent to 8,395.90 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,171.66 points, traded at 27,210.88 points (at 2.30 p.m.) — up 70.47 points or 0.26 per cent from the previous close at 27,140.41 points.

The Sensex has touched a high of 27,278.93 points and a low of 27,166.69 points during the intra-day trade so far.

On the contrary, the BSE market breadth was tilted in favour of the bears — with 1,552 declines and 1,082 advances.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with firm sentiments due to buying support.

“IT stocks faced resistance at higher levels and traded with mixed sentiments, while banking, pharma, auto, oil-gas, textile, FMCG and cement sector stocks traded with mixed sentiments due to profit booking at higher levels,” Desai said.

“Bearish USD/INR futures may support firm sentiments in the second half of the session while profit booking at higher levels may bring volatility in Indian equities markets in the second half of the session.”

On Wednesday, the benchmark indices surged on the back of positive global cues and higher crude oil prices.

The NSE Nifty rose by 92.05 points or 1.11 per cent to 8,380.65 points, while BSE Sensex was up 240.85 points or 0.90 per cent.

/IANS

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