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Short covering, foreign funds inflow lift markets
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SME Times News Bureau | 28 Sep, 2016
Short covering, along with value buying and fresh inflow of foreign funds, lifted the Indian equity markets on Wednesday.
The
key indices started the day's trade on a benign note. They made
substantial gains during the second half of the session due to a bout of
short covering.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up 38.75 points or 0.45 per cent to 8,745.15 points.
The
barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at
28,198.88 points, closed at 28,292.81 points -- up 69.11 points or 0.24
per cent from the previous close at 28,223.70 points.
The Sensex touched a high of 28,348.12 points and a low of 28,198.30 points during the intra-day trade.
The BSE market breadth was tilted in favour of the bulls -- with 1,644 advances and 1,003 declines.
The
broader market outperformed the BSE Sensex, with the BSE midcap and
smallcap indices registering gains of around a per cent each.
On Tuesday, the key indices were pulled lower by a decline in global crude oil prices and foreign fund outflows.
The barometer index had receded by 70.58 points or 0.25 per cent, while the NSE Nifty edged down 16.65 points or 0.19 per cent.
Initially on Wednesday, the benchmark indices opened on a lower note in sync with their Asian peers.
However,
value buying and short covering ahead of the upcoming futures and
options (F&O) expiry kept the equity markets buoyed.
Besides, positive European markets, inflow of foreign funds and an appreciating rupee uplifted the investors' sentiments.
The Indian rupee strengthened by three paise to 66.46 against a US dollar from its previous close of 66.49 to a greenback.
Some
gains were capped ahead of the outcome of the ongoing meet of the
Organisation of the Petroleum Exporting Countries (OPEC) producers in
Algeria, and upcoming speeches from the Federal Reserve and the European
Central Bank (ECB).
"Short covering and value buying after last
couple of day's falls pulled the equity markets up. Banking sector,
especially the public sector banks, led the recovery," Anand James,
Chief Market Strategist at Geojit BNP Paribas Financial Services, told
IANS.
"Positive European markets and a firm rupee also supported the upward movement."
According
to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the
CNX Nifty traded with firm sentiments throughout the session due to
short covering.
"IT stocks traded with mixed sentiments. Banking stocks witnessed good buying in the second half of the session," Desai said.
"Auto,
textile and oil-gas stocks traded with firm sentiments. Aviation stocks
traded with volatile sentiments due to profit booking at higher
levels."
In terms of investments, provisional data with exchanges
showed that the foreign institutional investors (FIIs) purchased stocks
worth Rs 73.83 crore, whereas the domestic institutional investors
(DIIs) divested scrip worth Rs 69.53 crore.
Sector-wise, the
S&P BSE automobile index surged by 274.37 points, followed by the
metal index, which rose by 187.56 points, and the banking index gained
164.18 points.
On the other hand, the S&P IT index edged down 27.07 points and the energy index fell by 13.50 points.
Major
Sensex gainers during Wednesday's trade were: Tata Steel, up 3.25 per
cent at Rs 379.80; Bharti Airtel, up 2.42 per cent at Rs 321.60; Adani
Ports, up 2.27 per cent at Rs 270.50; State Bank of India (SBI), up 1.83
per cent at Rs 253.50; and ONGC, up 1.66 per cent at Rs 251.60.
Major
Sensex losers were: Reliance Industries, down 1.87 per cent at Rs
1,089.70; Coal India, down 0.99 per cent at Rs 328.70; Hindustan
Unilever (HUL), down 0.97 per cent at Rs 887.20; Sun Pharmaceuticals,
down 0.53 per cent at Rs 766.45; and Cipla, down 0.35 per cent at Rs
605.30.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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