Attractive valuations, along with higher global crude oil prices and positive global indices, lifted the Indian equity markets on Tuesday to close in the green for the first time after six straight sessions of losses.
The downward spiral was triggered by the government's sudden move to demonetise higher denomination currency notes and the surprise victory of Republican Donald Trump in the US Presidential election.
The two key domestic indices also reeled under the strain of political bickering, a stalemate on the contours of the Goods and Services Tax (GST) framework, and heightened chances of a US rate hike in December.
During the last eight trade sessions since the demonetisation move was announced and the US Presidential results were declared (November 9 to 21), the Sensex lost 1,825.10 points, while the Nifty dropped 614.45 points.
On Tuesday, positive global cues, short covering and value buying led both the key indices to close the day's trade in the green, as healthy buying was witnessed in automobile, metal and banking stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 73.20 points or 0.92 per cent to 8,002.30 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,928.16 points, closed at 25,960.78 points -- up 195.64 points or 0.76 per cent from the previous close at 25,765.14 points.
The Sensex touched a high of 26,039.70 points and a low of 25,765.51 points during the intra-day trade.
The BSE market breadth was skewed in favour of the bulls -- with 1,457 advances and 1,099 declines.
On Monday, the equity markets had plunged to their lowest levels in the last six months with the benchmark Sensex receding below the 26,000-point mark and the NSE Nifty crashing below the 8,000 level.
The barometer index was down by 253.36 points or 0.97 per cent, whereas the NSE Nifty slipped by 99.45 points or 1.23 per cent.
"Positive global markets as well as higher crude oil prices pulled the equity markets from lower levels," Astha Jain, Senior Research Analyst at Hem Securities, told IANS.
However, the Indian rupee weakened by 10 paise to 68.26 against a US dollar from its previous close of 68.16 to a greenback.
"As the dollar index took a breather from its rally since past few days, hence the same effect has been seen into dollar-rupee movement today," Jain said.
"However, USD/INR is still expected to touch the high of 68.35 in upcoming trading sessions."
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded sideways to firm sentiments tracking positive global cues and short covering.
"IT, banking, pharma, auto, oil-gas, textile and aviation stocks traded firm on buying support," Desai said.
"Media-entertainment, FMCG and power stocks traded with mixed sentiments due to short covering, while cement stocks traded firm on buying support."
Sector-wise, the S&P automobie index surged by 362.38 ponts, followed by the metal index, which rose by 266.81 points, and the banking index, which edged higher by 137.84 points.
On the other hand, the S&P BSE capital goods index receded by 93.18 points, the power index declined by 6.94 points, and the utilities index fell by 5.02 points.
Major Sensex gainers on Tuesday were: Maruti Suzuki, up 2.97 per cent at Rs 4,930.50; Bajaj Auto, up 2.89 per cent at Rs 2,600.60; Hindustan Unilever (HUL), up 2.54 per cent at Rs 820; Hero MotoCorp, up 2.35 per cent at Rs 2,997; and Adani Ports, up 2.10 at Rs 260.50.
Major Sensex losers were: Larsen and Toubro (L&T), down 1.41 per cent at Rs 1,32.20; Gail, down 1.33 per cent at Rs 414.55; NTPC, down 0.87 per cent at Rs 153.55; Power Grid, down 0.51 per cent at Rs 184.10; and Dr. Reddy's Lab, down 0.45 per cent at Rs 3,120.70.
--IANS
ppg-rv/vt
Disclaimer: No Business Standard Journalist was involved in creation of this content
