Roundup: Value buying, rupee appreciation lift equity markets

Roundup: Value buying, rupee appreciation lift equity markets

Last Updated: Sat, Nov 26, 2016 16:18 hrs
Sensex

Short covering, along with value buying and rupee appreciation, lifted the Indian equities markets on Friday.

The key domestic indices gained more than 1.5 per cent each, with Nifty of the National Stock Exchange (NSE) reclaiming the 8,000-mark and 30-scrip sensitive index (Sensex) of the BSE closing above the 26,000 points level.

The wider 51-scrip Nifty of the NSE gained 148.80 points or 1.87 per cent to 8,075.65 points.

The barometer 30-scrip Sensex of the BSE, which opened at 25,953.24 points, closed at 26,316.34 points -- up 456.17 points or 1.76 per cent from the previous close at 25,860.17 points.

The Sensex touched a high of 26,343.95 points and a low of 25,874.45 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bulls -- with 2,036 advances and 594 declines.

On Thursday, the equity markets had closed in the red on the back of a massive rupee depreciation, continued outflow of foreign funds and subdued derivatives expiry roll-overs.

The barometer index was down by 191.64 points or 0.74 per cent, while the NSE Nifty receded by 67.80 points or 0.84 per cent.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the downside in USD/INR futures and short covering at lower levels supported the upside in the Nifty.

"Most sector stocks witnessed good buying sentiments either due to short covering or lower levels buying support," Desai said.

"Bearish USD/INR futures prices supported the recovery in Indian equity markets throughout the session."

The Indian rupee strengthened by 27 paise to close at 68.47 against a US dollar from its previous close of 68.74 to a greenback.

"With fresh positions being initiated in December futures and option series, and with rupee strengthening sharply, markets found its voice, and registered gains across sectors," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

"Gains were initially seen in IT and metal sectors, but mid caps also got the wind soon, suggesting that risk appetite had improved after a fortnight long selling spree had rendered prices ripe for value picking."

In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 372.88 crore, whereas the domestic institutional investors (DIIs) purchased scrips worth Rs 997.84 crore.

Sector-wise, all the 19 sub-indices of the BSE ended in the green.

The S&P IT index surged by 442.57 ponts, followed by the healthcare index, which rose by 359.45 points, and the banking index, which edged up by 247.06 points.

Major Sensex gainers on Friday were: Tata Consultancy Services (TCS), up 5.23 per cent at Rs 2,300.85; Infosys, up 4.78 per cent at Rs 977.30; Sun Pharmaceuticals, up 4.18 per cent at Rs 712.15; Gail, up 3.48 per cent at Rs 417.35; and Lupin, up 3.36 per cent at Rs 1,509.30.

Major Sensex losers were: Bajaj Auto, down 0.74 per cent at Rs 2,612.85; State Bank of India (SBI), down 0.29 per cent at Rs 260.95; and Bharti Airtel, down 0.22 per cent at Rs 300.85.



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