Positive global cues lift equity markets

Mumbai, Aug 8 

 Positive global markets, along with hopes of parliamentary approval for a major economic legislation and higher crude oil prices, buoyed the Indian equity markets during the late-afternoon trade session on Monday.

Sector-wise, healthy buying was witnessed in automobile, oil and gas, and consumer durables stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 24.65 points or 0.28 per cent to 8,707.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,181.92 points, traded at 28,154.95 points (at 2.30 p.m.) -- up 76.60 points or 0.27 per cent from the previous close at 28,078.35 points.

The Sensex has so far touched a high of 28,226.38 points and a low of 28,131.64 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls -- with 1,517 advances and 1,151 declines.

On Friday, the benchmark indices had closed the day's trade in the green due to short covering, coupled with positive domestic and global cues.

The barometer index had surged by 363.98 points or 1.31 per cent, while the Nifty rose by 132.05 points or 1.54 per cent.

"Fresh buying on the back of positive Asian markets, healthy US's jobs data and higher crude oil prices buoyed the equity markets. However, the dabate over the GST bill in the Lok Sabha might flare some volatility," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"Gains were capped due to caution ahead of the Reserve Bank of India's monetary policy review."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, 
IT and auto stocks held on to their initial gains, while banking and pharma stocks traded with mixed sentiments due to profit booking at higher levels. 

"Aviation stocks faced resistance at higher levels and traded with sideways sentiments due to the recovery in crude oil prices," Desai noted.

"Sideways to bearish sentiments in USD/INR futures prices supported the uptrend in Nifty."