Global cues, short covering lift equity markets (Roundup)

Positive global cues, along with short covering and healthy quarterly results, lifted the Indian equity markets on Monday.

Besides, value buying and higher global crude oil prices enhanced investors' confidence which led both the key indices to gain over half a per cent each.

Strong buying support was witnessed in banking, healthcare and metal stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 63.30 points or 0.75 per cent to 8,497.05 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,552.27 points, closed at 27,458.99 points -- up 184.84 points or 0.68 per cent, from its previous close at 27,274.15 points.

The Sensex touched a high of 27,591.15 points and a low of 27,398.72 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bulls -- with 2,020 advances and 861 declines.

On Friday, the benchmark indices were dragged lower by global cues. The barometer index declined by 156.13 points or 0.57 per cent, while the NSE Nifty edged down by 51.20 points or 0.60 per cent.

Initially on Monday, the key Indian indices opened in the green in sync with their Asian peers.

The Asian and European markets were largely positive following US electoral developments, such as the clean chit given by the US investigators to the Democratic Presidential candidate Hillary Clinton.

The US presidential election will be held on November 8, Tuesday.

"The dynamics of US Presidential election, along with short covering and better-than-expected quarterly results, buoyed the Indian equity markets," Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS.

"However, profit booking during the second half of session capped gains. The rupee was slightly on the weaker side."

The Indian rupee weakened by four paise to 66.74 against a US dollar from its previous close of 66.70 to a greenback.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with firm sentiments due to short covering and lower levels buying.

"IT stocks traded with mixed sentiments due to profit booking at higher levels during the second half of the session," Desai said.

"However, banking, pharma, auto and media-entertainment stocks traded with firm sentiments."

The reaction to the disappointing US non-farm payrolls data, especially given the impending rate-hike scenario in December, was another major theme for the day's trade.

The US Bureau of Labor Statistics last Friday reported that the total non-farm payroll employment increased by 161,000 last month, whereas the unemployment rate was little changed at 4.9 per cent.

The lower-than-expected data assumes significance as it can hamper the start of the next rate-hike cycle expected in December.

A hike in the US interest rates can potentially lead Foreign Portfolio Investors away from emerging markets such as India.

In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) bought stocks worth Rs 311.18 crore, whereas the domestic institutional investors (DIIs) purchased scrip worth Rs 779.86 crore.

Sector-wise, the S&P BSE banking index surged by 370.65 points, the healthcare index rose by 286.90 points, and the metal index edged up by 198.90 points.

In contrast, the S&P BSE capital goods index declined by 13.14 points, and the telecom index fell by 6.16 points.

Major Sensex gainers during Monday's trade were: Lupin, up 6.93 per cent at Rs 1,519.40; State Bank of India (SBI), up 4.06 per cent at Rs 252.70; ICICI Bank, up 3.36 per cent at Rs 278.75; ITC, up 3.05 per cent at Rs 256.70; and Tata Steel, up 2.10 per cent at Rs 411.50.

Major Sensex losers were: Tata Consultancy Services (TCS), down 2.18 per cent at Rs 2,279.35; Larsen and Toubro (L&T), down 1.34 per cent at Rs 1,399.85; Hindutan Unilever (HUL), down 1.09 per cent at Rs 838.15; Tata Motors, down 0.94 per cent at Rs 507.30; and ONGC, down 0.85 per cent at Rs 267.35.

--IANS

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