Equity markets rise on positive global cues, value buying

Indian equity markets on Wednesday were lifted by positive global cues and value buying.

Both the key indices traded in the green during the mid-afternoon trade session, as healthy buying was witnessed in stocks of automobile, consumer durables and capital goods.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up 30.10 points or 0.34 per cent, to 8,806 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,554.38 points, traded at 28,620.15 points (at 1.30 p.m.) -- up 96.95 points or 0.34 per cent from the previous close at 28,523.20 points.

The Sensex has so far touched a high of 28,620.15 points and a low of 28,529.93 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls -- with 1,584 advances and 958 declines.

On Tuesday, the benchmark indices had ended in the red due to caution ahead of major global financial events and profit-booking.

The barometer index had slipped by 111.30 points or 0.39 per cent, while the NSE Nifty edged down 32.50 points, or 0.37 per cent.

"The markets are largely positive as hopes of a rate-hike turned down in the US Fed meet enhanced the risk-taking appetite," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"However, investors are not willing to push prices higher as caution still prevails ahead of the FOMC's final decision. The Bank of Japan (BoJ) decision (to keep its policy balance rates unchanged) did not have much impact on the domestic markets."

Initially on Wednesday, the benchmark indices opened on a flat-to-positive note on the back of positive Asian markets.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with firm sentiments on buying support from traders.

"Most IT stocks traded firm on recovery in USD/INR futures. Auto and oil-gas stocks also traded with firm sentiments," Desai said.

"Aviation stocks traded firm on short covering, however higher crude oil prices are likely to limit the upside. Power stocks traded with firm sentiments supported by buying support at lower levels."

--IANS

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