Buoyant global markets cheer investors; Sensex up 204 points (Roundup)

Lessened chances of a US rate hike, buoyant Asian and European markets coupled with bargain hunting propelled a barometer index of the Indian equity markets to gain 204 points or 0.76 percent on Friday.

The late-hour buying spree buoyed the Indian markets as investors cheered on the lessened possibility of a rate hike in the US. Buoyant Asian and European markets also supported the late hour rally.

Initially, both the bellwether indices opened higher. However, the initial gains were ceded due to caution over the upcoming quarterly results which included earnings figures of bluechips.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made gains in the day's trade. It was higher by 59 points or 0.72 percent at 8,238.15 points.

The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange (BSE), which opened at 27,062.80 points, closed at 27,214.60 points -- 204.46 points or 0.76 percent up from its previous close at 27,010.14 points.

The Sensex touched a high of 27,239.22 points and a low of 26,917.12 points in the intra-day trade.

The barometer index had closed with gains of 230 points or 0.86 percent on Thursday.

Analysts observed that a late-hour buying spree that came on the back of lessened chances of a US rate hike in October and buoyant Asian and European market boosted the Indian equity markets.

"A late-hour rally on the back of positive European markets and short covering allowed the major indices to make gains of around 1 percent each," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

In Asian markets, Japan's Nikkei closed the day's trade up 1.08 percent while Hong Kong's Hang Sang rose 0.72 percent. China's Shanghai Composite index increased by 1.62 percent.

In Europe, London's FTSE 100 index was higher by 0.32 percent, French CAC 40 rose by 0.26 percent and Germany's DAX Index edged up by 0.08 percent.

"Positive European markets concurred with Thursday's US markets positive close, which rose as weak data pushed the rate hike prospects further away," James said.

The poor US retail sales data, coupled with lower than expected inflation, has increased the possibility of US Federal Reserve (US Fed) not raising interest rates this year.

The US Fed is slated to conduct its Federal Open Market Committee (FOMC) meet on October 27-28.

The FOMC assumes significance as higher interest rates in the US are expected to lead away FPIs (Foreign Portfolio Investors) from emerging markets such as India.

Nitasha Shankar, vice president, research with YES Securities, told IANS: "Banking stocks led the rally, outperforming the headline index. All major indices ended trade with gains."

"Maximum gains have come in the banks, auto and energy stocks. Metal and fast moving consumer goods (FMCG) stocks witnessed selling pressure," Shankar said.

Sector-wise, S&P BSE consumer durables index receded by 51.55 points and metal index declined by 32.62 points.

The S&P BSE capital goods index augmented by 291.13 points, banking index gained by 261.60, automobile index increased by 159.97 points, oil and gas index rose by 106.71 points and healthcare index ws higher by 44.49 points.

Major Sensex gainers during Friday's trade were: Larsen and Toubro (L&T), up 2.83 percent at Rs.1,604.60; State Bank of India (SBI), up 2.39 percent at Rs.254.90; Maruti Suzuki, up 1.06 percent at Rs.4,449.90; ONGC, up 1.58 percent at Rs.264.35; and Tata Motors, up 1.44 percent at Rs.386.20.

The major Sensex losers were: Lupin, down 2.11 percent at Rs.2,054.95; Tata Steel, down 1.04 percent at Rs.252.65; Coal India, down 0.98 percent at Rs.338.45; Hindustan Unilever, down 0.77 percent at Rs.784.85; and Bharti Airtel, down 0.46 percent at Rs.349.85.