Equity indices recover from 5-week lows, global cues lift sentiments

Broadly positive global cues, coupled with healthy buying in consumer durables, metals and automobile stocks, lifted the key Indian equity indices from their five-week lows to trade with gains during the mid-afternoon session on Monday.

According to market observers, a strong rupee and individual index heavyweights like Tata Steel, Adani Ports, Cipla and Maruti Suzuki, among others, aided the BSE Sensex and the NSE Nifty50 to pare last week's losses.

At 12.45 p.m., the Nifty50 of the National Stock Exchange (NSE) rose by 82 points or 0.84 per cent to trade at 9,792.80 points.

The Nifty50 reclaimed the psychologically important 9,800-level intra-day by touching a high of 9,806.85 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 31,299.52 points, traded at 31,456.04 points -- up 242.45 points, or 0.78 per cent, from its previous close at 31,213.59 points.

The Sensex has so far touched a high of 31,501.29 points and a low of 31,298.90 points during the intra-day trade.

The BSE market breadth was bullish with 1,805 advances and 598 declines.

"The markets snapped five-session long losing streak after Asian markets bounced tracking a firmer Wall Street after weaker-than-expected July consumer price data led investors to bet that benign inflation would keep the US Federal Reserve from raising rates again this year," said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.

"The broader NSE's Nifty, too, rose in the morning hours. The Indian rupee opened stronger against the US dollar. The shares of Cipla, and Adani Ports rose, whereas the shares of Infosys, Cipla and Bharti Airtel fell," Desai said.

On Friday, the banchmark indices plunged to their five-week lows on the back of negative global cues and intense selling activities in metal, automobile and banking stocks.

The Nifty50 fell by 109.45 points, or 1.11 per cent to close at 9,710.80 points, while the Sensex closed at 31,213.59 points -- down 317.74 points, or 1.01 per cent.

--IANS

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