Short covering buoys Indian equities


Mumbai, Dec 9 (IANS): Indian equities markets were on Friday buoyed by short covering, coupled with higher crude oil prices and mixed global indices, during the mid-afternoon trade session.

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

The key Indian indices traded on a flat-to-positive note, as healthy buying was witnessed in banking, IT and consumer durables stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 17.85 points or 0.22 per cent to 8,264.70 points. 

Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,787.14 points, traded at 26,777.30 points (at 2 p.m.) -- up 83.02 points or 0.31 per cent from the previous close at 26,694.28 points.

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

The BSE market breadth was tilted in favour of the bulls -- with 1,374 advances and 1,076 declines.

"The Nifty faced some resistance tracking higher USD/INR futures prices and profit booking at higher levels," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"IT, banking, cement and power sector stocks traded with firm sentiments, whereas pharma, auto, oil-gas, media-entertainment and FMCG stocks traded with mixed sentiments due to profit booking at higher levels."

According to Astha Jain, Senior Research Analyst at Hem Securities, the global indices were mixed, as investors are waiting for the US FOMC (Federal Open Market Committee) meet next week and expecting a hike in interest rates. 

"The USD/INR traded with sideways sentiments as the dollar is in a consolidation phase after a sharp correction rally since last nine trading sessions," Jain said.

"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."

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.

  

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Title: Short covering buoys Indian equities



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