Positive global cues surge equity markets

Positive global cues, coupled with value buying, surged the Indian equity markets on Wednesday.

Consequently, the key indices made healthy gains during the late-afternoon trade session, as buying was witnessed in banks, capital goods, automobile, information technology (IT) and oil and gas stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 174.90 points or 2.26 percent, at 7,923.75 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,432.10 points, traded at 25,852.61 points (2.50 p.m.) -- up 547.14 points or 2.16 percent from the previous close at 25,305.47 points.

The Sensex has so far touched a high of 25,865.66 points and a low of 25,430.59 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bulls -- with 1,530 advances and 909 declines.

Both the key indices had ended on a positive note during the previous trade session on Tuesday.

The barometer index had risen by 75.11 points or 0.30 percent, while the NSE Nifty had inched up by 17.80 points or 0.23 percent.

In terms of broader markets, the midcap and smallcap indices were up by around one percent each.

Initially on Wednesday, the key indices opened on a higher note, in-sync with their Asian peers, which rose on the back of positive macro-economic data from the US.

The US data showed signs of a healthy economic recovery.

Besides, higher crude oil prices, positive European indices and a stable rupee restored investors' confidence.

In addition, value buying at key levels and predictions of better-than-expected monsoon rains supported prices.

"Positive US macro-economic data and subsequent rise in the US stocks helped Asian and domestic markets to rise. Value buying and predictions of healthy monsoon rains supported prices," Anand James, chief market strategist at Geojit BNP Paribas Financial Services, told IANS.

According to Dhruv Desai, director and chief operating officer of Tradebulls, pointed out that earnings season continued to generate stock specific actions.

"Morgan Stanley also upgraded India to overweight from equal weight adding the positive sentiment for our market," Desai said.

--IANS

rv/vm