Indian equity indices recoup amid strong cues from global markets

mumbai — Robust buying during the last two sessions of the trading week amid strong cues from the global markets and persistent pumping in of funds by domestic institutional investors (DIIs) lifted the key domestic equity indices from their previous week’s lows.

Market observers said the upward rally was also fuelled by positive hopes of the ruling BJP’s win in the crucial two-phased Gujarat assembly elections on December 9 and December 14.

On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) rose by 201.26 points, or 0.61 per cent, to close at 33,034.20 points.

The broader Nifty50 of the National Stock Exchange (NSE)

Market breadth was positive in two out of the five trading sessions of the week

Deepak Jasani, head, Retail Research, HDFC Securities

edged higher by 143.85 points, or 1.42 per cent, to close the week’s trade at 10,265.65 points.

“After weakness seen in the early part of the week, markets bounced back sharply from the lows of 10,033 to end the week on a positive note. Market breadth was positive in two out of the five trading sessions of the week,” Deepak Jasani, head — Retail Research, HDFC Securities, said.

“Sectorally, FMCG, consumer durables, IT and oil and gas gained the most over the week, while there were no weekly losers among sectors,” he added.

On the currency front, the rupee strengthened by only two paise to close at 64.45 against the US dollar from its last week’s close at 64.47.

D.K. Aggarwal, chairman and managing director of SMC Investments and Advisors, said: “The domestic market ended the last trading day of the week in green after buying by retail investors and domestic institutions gathered momentum amid strong global cues.”

“The sentiment also remained upbeat on strong global equity markets amid fall in crude oil prices and opinion polls suggesting BJP may see an easy win in the Gujarat elections,” Aggarwal said.