Mumbai: Lower crude prices coupled with an inflow of foreign funds and a strong rupee buoyed the Indian equity market on Tuesday to log the 6th straight session of advances.
Initially, the S&P BSE Sensex and NSE Nifty50 had a gap-down opening on the back of subdued global markets ahead of the US Federal Open Market Committee’s (FOMC) two-day meeting starting on Tuesday.
The committee is expected to raise interest rates which have kept the sentiments tepid, analysts said.
In addition, the Indian equity indices remained in the negative zone as investors chose to book profits. However, lower crude prices and a resurgent rupee triggered a buying spree during the late afternoon session.
Sector-wise, financial stocks rose, whereas export-oriented IT and Tech shares ended over 1 per cent lower.
Index-wise, the Sensex settled 77.01 points or 0.21 per cent higher at 36,347.08 points and the Nifty50 gained 20.35 points or 0.19 per cent to close at 10,908.70 points.
According to Geojit Financial Services Head of Research Vinod Nair: “Market reversed from day’s low despite a weak global market as oil prices slid further and a drop in bond yield raised investor’s confidence.
“Global market traded on a negative note due to concerns of a slowdown in world economic growth. A strong rupee and a fall in yield are easing the liquidity concerns of the market.”
The Brent crude traded at $57.80 a barrel around the time when markets closed.
In terms of currency, the Indian rupee closed at 70.44 per US dollar from its previous close of 71.55, gaining over 1 rupee.
“Crude oil prices fell over 2 per cent providing support to the rupee. In addition, investment has improved in India after weakness in the major global economies,” Anuj Gupta, Deputy Vice President – Research, Commodities and Forex, Angel Broking, told IANS.
Foreign Institutional Investors (FII) turned buyers on Tuesday on purchases of shares worth Rs 144.76 crore, while Domestic Institutional Investors (DII) sold stocks worth Rs 182.60 crore, provisional data from the BSE showed.
“Technically, with the Nifty rallying higher for the sixth consecutive session, the bulls remained in control. Further upsides are likely once the immediate resistances of 10,915 are taken out,” said HDFC Securities’ Retail Research Head Deepak Jasani.
“Crucial supports to watch for any weakness are at 10,819.”
Stock-wise, Sun Pharma gained the most among the 30-stock on Sensex. The shares of the pharma major settled 2.98 per cent higher followed by Power Grid with 2.16 per cent.
Other top gainers in the 1 to 2 per cent bracket were Mahindra and Mahindra, Vedanta and Asian Paints.
In contrast, Infosys lost 2.48 per cent. Wipro, Yes Bank, ITC and Hindustan Uniliver lost upto 1.30 per cent.