Indian equity markets end higher on global cues


Mumbai, June 28 (IANS): Global cues, a moderately rebounding rupee and hopes of good monsoon led key Indian equity indices to end the day's trade on a firm note on Tuesday, while recovering considerably from the last week's Brexit hangover.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,410.66 points, closed at 26,524.55 points -- up 121.59 points or 0.46 per cent -- from the previous close at 26,402.96 points.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up to 8,127.85 points -- up 33.15 points or 0.41 per cent.

The Sensex touched a high of 26,583.33 points and a low of 26,378.46 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls -- with 1,606 advances and 1,000 declines.

Healthy buying was particularly witnessed in sectors like telecom, fast moving consumer goods (FMCG) and metal.

On Monday, the key indices ended flat due to profit booking and an endeavour to recover from the Brexit. The barometer index inched up by 5.25 points or 0.02 per cent, while the Nifty was up 6.10 points, or 0.08 per cent.

Initially on Tuesday, the key indices opened on a flat note -- marginally in the green -- taking cues from the global markets. Later during the day, however, the markets were able to absorb the uncertainities raised by the European Union referendum and recover from the previous day's low.

The European markets recovered slightly ahead of the commencement of a two-day European Council meet. The Asian markets, too, were able to brush off some of their early losses that Brexit triggered. 

The rupee showed some recovery ahead of the F&O (Futures and Options) expiry of June contracts on Tuesday. Hopes of a healthy monsoon and higher global crude oil prices also contributed to the firm closing of the benchmark indices.

The Indian markets are still expected to remain cautious ahead of some major industrial data to be released later during the week.

“Prices being supported on the lower side, the second day of markets ended in a recovery. Asian markets were also largely positive,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

“The rupee has also managed to come closer to its 68 (to the US dollar) mark, after some initial losses,” he said, adding: “Crude’s rise by almost 3 per cent also seemed to support positive sentiments. IMD’s report that 51 per cent of India’s area has received normal rainfall added to belief that domestic cues remain supportive.”

According to Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services, a strong rupee and consolidation in oil price below $50 provided a fillip to the market with the midcap stocks outperforming.

In terms of investments, the provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 190.43 crore, and the domestic institutional investors (DIIs) divested scrip worth Rs 242.71 crore.

Sector-wise, the S&P BSE telecom index surged by 2.26 per cent, followed by the FMCG index, which rose by 1.75 per cent; and the metal index gained by 1.01 per cent.

On the other hand, the IT (information technology) index fell by 0.89 per cent, followed by the TECK (media, entertainment and technology) index, which slipped by 0.46 per cent, and the consumer durables index dipped by 0.08 per cent.

Major Sensex gainers during Tuesday's trade were: Lupin, up 4.39 per cent at Rs 1,543.30; Hindustan Unilever (HUL), up 3.25 per cent at Rs 887.75; ITC, up 2.59 per cent at Rs 368.35; Cipla, up 1.61 per cent at Rs 496.85; and Coal India, up 1.43 per cent at Rs 313.15.

Major Sensex losers were: Tata Motors, down 1.84 per cent at Rs 440.35; Tata Consultancy Services (TCS), down 1.34 per cent at Rs 2,461.80; Wipro, down 1.22 per cent at Rs 542.40; Sun Pharmaceuticals, down 0.99 per cent at Rs 766.20; and Hero MotoCorp, down 0.95 per cent at Rs 3,025.50.

  

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Title: Indian equity markets end higher on global cues



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