Expectations of a share buy-back offer from a large IT firm and a strong rupee lifted the Indian equities markets yesterday, even as caution prevailed ahead of derivatives expiry and outflow of foreign funds.
Besides, the key indices closed with gains of over half a per cent each on the back of positive global cues and healthy buying support witnessed in the metal, IT and automobile stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 57.50 points or 0.65% to 8,879.20 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,481.91 points, closed at 28,661.58 points – up 192.83 points or 0.68% from the previous close at 28,468.75 points.
The Sensex touched a high of 28,696.53 points and a low of 28,419.27 points during the intra-day trade.
The BSE market breadth was tilted in favour of the bulls – with 1,708 advances and 1,141 declines.
In terms of broader markets, the BSE mid-cap index rose by 0.68%, whereas the small-cap index was up by 0.91%. On Friday, the benchmark indices rose to new five-month closing highs on the back of fresh buying.
The NSE Nifty was up by 43.70 points or 0.50% and closed at 8,821.70 points, and the BSE Sensex was up 167.48 points or 0.59% at 28,468.75 points. Market observers pointed out that buy-back in the IT space and expectation of turn-around in the metal-infrastructure space kept the benchmark indices north-bound.
“A late rally in software major TCS (Tata Consultancy Services) stocks, which rose by 3.92% to Rs2,505.20, helped pull the market higher,” Vijay Singhania, founder and director of brokerage firm Trade Smart Online, told IANS.
“Global cues resulted in metal stocks gaining during the day, with the metal index rising 2.07%.”
On the contrary, investors are expected to be cautious ahead of US Fed’s FOMC (Federal Open Market Committee) and the minutes of the Reserve Bank of India’s Monetary Policy Committee (MPC).
“The US FOMC and the RBI minutes are expected to throw no surprises, but will keep markets guarded,” said Anand James, chief market strategist at Geojit BNP Paribas Financial Services.
“Trading dynamics are bound to be influenced by holiday and (Mumbai) municipal elections, especially with derivatives expiry also packed in.”
The RBI minutes of its last monetary policy review are expected to be released today, while the derivatives expiry will take place on Thursday.
On the currency front, the Indian rupee strengthened by eight paise to 66.93 against a US dollar from its previous close of 67.01 to a greenback.






Related Story