Value buying lifts equity markets higher (Intro Roundup)

The Indian equity markets made healthy gains on Tuesday as value buying re-emerged after consecutive sessions of consolidation.

However, gains were capped due to caution over the rising tensions in the Middle East and political uncertainty in Europe.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 55.55 points or 0.61 per cent to close at 9,237 points.

The 30-scrip Sensitive Index (Sensex) of the BSE gained 212.61 points or 0.72 per cent during the day's trade session.

The S&P BSE Sensex, which opened at 29,630.06 points, closed at 29,788.35 points from its previous day's close at 29,575.74 points.

The barometer index touched a high of 29,804.51 points and a low of 29,570.58 points during the intra-day trade.

The BSE market breadth was bullish -- with 1,715 advances and 1,173 declines.

Similarly, broader markets ended the day's trade on a high note. The S&P BSE mid-cap index rose by 0.39 per cent, while the small-cap index closed higher by 1.01 per cent.

"Markets rallied strongly on Tuesday after the weakness seen in the last few sessions," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

"Gains were led by index heavyweights ITC, ICICI Bank, Infosys and L&T. Major Asian markets however have ended on a negative note, barring the Shanghai index. European indices like FTSE 100 and CAC 40 were trading higher."

According to Anand James, Chief Market Strategist, Geojit Financial Services, value buying re-emerged after last couple of day's consolidation had rendered prices attractive.

"Rupee reversing some of its losses and approaching Infosys Q4 results propped up IT stocks. Banks continue to look forward to NPA resolution measures shortly, and the strength was visible today," James said.

"India's IIP and CPI releases tomorrow will keep market interested, but may not make a strong move until Q4 numbers start flowing in."

On the currency front, the Indian rupee strengthened by seven paise to 64.49-50 against a US dollar from its previous close of 64.56 to a greenback.

In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) sold scrip worth Rs 750.52 crore, while the domestic institutional investors (DIIs) purchased scrip worth Rs 826.66 crore.

Commenting on the sector specific movement, Dhruv Desai, Director and Chief Operating Officer of Tradebulls said that IT stocks witnessed selling pressure throughout the session, whereas banking, media and metals remained top performers.

Sector-wise, the S&P BSE capital goods index surged by 255.25 points, the banking index rose by 242.29 points, and the fast moving consumer goods index edged higher by 143.69 points.

On the other hand, metal index slipped by 186.40 points.

Major Sensex gainers on Tuesday were: ITC, up 3.16 per cent at Rs 282.15; PowerGrid, up 2.23 per cent at Rs 199.45; ICICI Bank, up 1.89 per cent at Rs 282.90; Larsen and Toubro (LT), up 1.80 per cent at Rs 1,704.80; and State Bank of India (SBI), up 1.63 per cent at Rs 293.70.

Major Sensex losers were: Adani Ports, down 4.78 per cent at Rs 334.45; Cipla, down 1.66 per cent at Rs 578.80; Tata Steel, down 1.44 per cent at Rs 488.30; Bajaj Auto, down 0.54 per cent at Rs 2,822.45; and Reliance Industries, down 0.50 per cent at Rs 1,374.10.

--IANS

rv/dg