Attractive valuations buoy markets, Sensex gains 31 points

Attractive valuations, coupled with hopes of a healthy third quarter result season buoyed the Indian equity markets during the early morning trade session on Tuesday.

This led to a barometer index of the Indian equity markets to modest gains of 31 points.

The bellwether indices of the Indian equity markets made modest gains, as investors were attracted by a sizeable number of stocks that are trading near their yearly lows.

Apart from value buying, short covering amidst thin volumes led the morning relief rally.

In addition, investors were hopeful for a better third quarter (Q3) results by India Inc. on the back of an economic recovery and low commodity prices.

The Q3 earnings results will start coming in from Tuesday.

However, gains were being capped due to long-liquidation positions and lackluster Asian markets.

Besides, caution prevailed over the upcoming domestic macro-data on industrial output, and retail inflation. Both the data points are slated to be released on Tuesday.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was trading higher by 31 points, or 0.13 percent during the early morning trade session.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading in the green. It inched-up by 10 points, or 0.12 percent, at 7,573.25 points.

The Sensex of the S&P BSE, which opened at 24,862.93 points, was trading at 24,856.31 points (at 9.25 a.m.) - up 31.27 points or 0.13 percent from the previous day's close at 24,825.04 points.

The Sensex has so far touched a high of 24,882.30 points and a low of 24,819.30 points in intra-day trade.

The Sensex had closed the previous session on January 11, down 109 points, or 0.44 percent, while the Nifty was lower by 38 points, or 0.49 percent.