Domestic cues, fresh buying lift equity markets

Mumbai, Aug 31: Indian equity markets were pushed higher on Wednesday ahead of the release of key macro-economic data, supported by fresh buying.

Both the key Indian equity indices traded in the green during the mid-afternoon session, with healthy buying witnessed in banking, capital goods and automobile stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up 67.90 points, or 0.78 per cent to 8,812.25 points. 

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,372.25 points, traded at 28,510.40 points (at 2.45 p.m.) -- up 167.39 points, or 0.59 per cent from the previous close at 28,343.01 points. 

The Sensex has so far touched a high of 28,532.25 points and a low of 28,363.10 points during the intra-day trade. 

The BSE market breadth was tilted in favour of the bulls -- with 1,368 advances and 1,221 declines.

On Tuesday, both the key indices had closed with substantial gains on the back of positive global cues, strong buying support and an appreciating rupee.

The barometer index had gained 440.35 points, or 1.58 per cent, while the NSE Nifty edged up by 139.90 points, or 1.59 per cent.

The key indices initially opened on a higher note on Wednesday in spite of mixed cues from Asian and European markets.

However, investors remained hopeful on domestic cues such as the announcement later on Wednesday of the gross domestic product (GDP) data for the first quarter of 2016-17, among others.

In addition, the upward trend of the indices continued as foreign institutional investors (FIIs) resorted to buying activities, unleashing a fresh inflow of funds.

"The markets have got a psychological boost and have attracted fresh buyers. The FIIs have been providing support to the domestic markets," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"Investors are also keeping an eye out on some major economic data, such as the GDP data, fiscal deficit data and the eight core industrial output data that are due for release later today, and the US jobs data on Friday."