Firm global cues, short covering buoy Indian equities (Roundup)

Firm global cues, coupled with short covering and higher crude oil prices, marginally lifted the Indian equities markets on Friday.

Besides, firm global indices on the back of the European Central Bank's (ECB) decision to extend its asset purchase programme, buoyed investors' sentiments.

However, gains were capped due to caution ahead of major domestic macro-data announcement, depreciation in the rupee and profit booking.

In addition, global markets were cautious ahead of the US Federal Open Market Committee's (FOMC) rate setting meet to be held in the upcoming week.

The key Indian indices, which had opened the day's trade on a buoyant note in sync with their Asian peers, closed on a flat-to-positive note.

 

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 14.90 points or 0.18 per cent to 8,261.75 points.

Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,787.14 points, closed at 26,747.18 points -- up 52.90 points or 0.20 per cent from the previous close at 26,694.28 points.

The Sensex touched a high of 26,803.76 points and a low of 26,707.81 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls -- with 1,446 advances and 1,183 declines.

On Thursday, the equity markets propelled on the back of fresh inflows of foreign funds, coupled with positive global cues and rupee appreciation.

The barometer index was up 457.41 points or 1.74 per cent, while the NSE Nifty gained by 144.80 points or 1.79 per cent.

"Indian markets opened higher on Friday, with the Sensex rising over 100 points and the Nifty above 8,250, tracking cues from higher global markets after ECB's decision to extend its asset purchase program," SMC Global Securities said in a commentary to IANS.

"However, markets could not sustain at the higher levels and pared the early gains. The concerns on demonetisation drive slowing the economy growth continued to spook the confidence of the market participants."

According to Astha Jain, Senior Research Analyst at Hem Securities, the global indices were mixed, as investors awaited the US FOMC meet next week, expecting a hike in interest rates.

"However, crude oil prices were higher expecting a production cut ahead of the OPEC (Organisation of the Petroleum Exporting Countries) and non OPEC-members meet on Saturday," Jain said.

The Indian rupee depreciated by six paise to close at 67.42 against a US dollar from its previous close of 67.36 to a greenback.

"Indian rupee remained sideline in today's trading session after surging to almost this month's highest level in the previous session against the greenback," SMC Global Securities added.

"Overnight gains in the overseas dollar on the back of robust release of unemployment claims data from the US dented the demand for Indian rupee in today's session."

As per Dhruv Desai, Director and Chief Operating Officer of Tradebulls, IT, banking, cement and power stocks traded with firm sentiments, while pharma and auto stocks witnessed good recovery from lower levels.

"Media-entertainment, textile and FMCG stocks traded with mixed sentiments, whereas aviation stocks faced resistance at higher levels tracking higher crude oil prices," Desai said.

Sector-wise, the S&P BSE banking index surged by 241.17 points, followed by the IT index, which gained 45.76 points, and the FMCG index, which rose by 42 points.

On the other hand, the S&P BSE automobile index receded by 94.77 points, the metal index fell by 25.15 points, and the capital goods index was lower by 21.43 points.

Major Sensex gainers on Friday were: State Bank of India (SBI), up 2.41 per cent at Rs 266; ICICI Bank, up 2.35 per cent at Rs 268.35; ONGC, up 1.61 per cent at Rs 306.90; Axis Bank, up 1.51 per cent at Rs 456.30; and ITC, up 1.20 per cent at Rs 235.80.

Major Sensex losers were: Bajaj Auto, down 2.05 per cent at Rs 2,717; Coal India, down 1.60 per cent at Rs 307.20; HDFC, down 1.56 per cent at Rs 1,267.10; Mahindra and Mahindra (M&M), down 1.43 per cent at Rs 1,189.10; and Hero MotoCorp, down 0.84 per cent at Rs 3,281.15.

--IANS

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