Value buying buoys markets, Sensex up 154 points

Value buying after a sharp correction during intra-day trade buoyed prices and propelled a barometer index of the Indian equity markets to a gain of 154 points or 0.58 percent in the late-afternoon session on Tuesday.

Profit bookings coupled with caution over the upcoming quarterly results had earlier during the day subdued investor sentiments and led both bellwether indices of the Indian equities markets to give up their morning gains during intra-day trade.

Furthermore, both bellwether indices had receded after a key data showed a fall in services output for the last month.

The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange which opened at 26,976.66 points, was trading at 26,939.84 points (3.00 p.m.) -- 154.29 points or 0.58 percent up from its previous close at 26,785.55 points.

The Sensex had so far touched a high of 27,010.27 points and a low of 26,751.25 points in the intra-day trade.

The Sensex on Monday closed with gains of 564.60 points or 2.15 percent.

On Tuesday, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading in the green after venturing into the negative territory earlier in the day. It was higher by 39 points or 0.48 percent at 8,158.30 points.

Market observers cited value buying and continuation of positive momentum due to last week's monetary easing for the gains.

"Value buying raised prices higher after the sharp intra-day correction which took place in the intra-day trade when investors booked profits," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

Nitasha Shankar, vice president, research with YES Securities, told IANS: "Tech stocks are dragging the index lower while pharma stocks are providing support. Small and mid cap indices continue to outperform the headline index."

Sector-wise, consumer durables, healthcare, fast moving consumer goods (FMCG), oil and gas, and metal stocks witnessed healthy buying.

However, information technology (IT), technology, entertainment and media (Teck) and banking stocks came under intense selling pressure.

The S&P BSE consumer durables index zoomed by 500.30 points, healthcare index augmented by 187.62 points, FMCG index gained by 173.73 points, oil and gas index rose by 162.09 points and metal index was higher by 144.61 points.

However, the S&P BSE IT index receded by 114.70 points, Teck index declined by 39.72 points and banking index was lower by 3.49 points.