Global cues, surge in oil & gas stocks lift equity indices

A day after closing at their lowest levels in a week's time, key Indian equity indices bounced back to trade with substantial gains during the mid-aternoon session on Wednesday as positive global cues and healthy buying in oil and gas, metal and banking stocks lifted investors' sentiments.

According to market observers, healthy buying in index heavyweights like HDFC, Reliance Industries, Adani Ports and Coal India aided the upward trajectory of the NSE Nifty50 and the BSE Sensex.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) reclaimed the psychologically important 9,900-mark to touch a high of 9,909.45 points during intra-day trade.

Around 1 p.m., it traded at 9,898.15 points -- up 102.10 points or 1.04 per cent.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 31,534.57 points, traded at 31,690.23 points -- up 301.84 points or 0.96 per cent from its previous close at 31,388.39 points.

The Sensex has so far touched a high of 31,727.98 points and a low of 31,533.02 points during the intra-day trade.

The BSE market breadth was bullish with 1,779 advances and 619 declines.

"After a sharp fall in the previous session, the benchmark indices opened higher on Wednesday ahead of derivatives expiry of August series due tomorrow. Positive trend in Asian markets and on Wall Street after concerns about North Korea's firing of a missile over Japan ebbed, aided the sentiment," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"Shares of Bank of Baroda, Tata Power, Tata Motors DVR and ACC fell up to 3 per cent lower as these companies will move out of the NSE's benchmark Nifty 50 index from September 29. Top gainers on NSE were Indian Oil Corporation, Hindalco and Vedanta, while on the losing side were HCL, Zee and Tech Mahindra," he added.

On Tuesday, the benchmark indices closed deep in the red as rising geo-political tension in East Asia, along with foreign fund outflows, subdued sentiments.

The Nifty50 closed lower by 116.75 points or 1.18 per cent at 9,796.05 points, while the Sensex closed at 31,388.39 points -- down 362.43 points or 1.14 per cent.

--IANS

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