Mumbai– Extending gains for the second consecutive session, the key Indian equity indices on Tuesday closed in the green as positive global cues, along with healthy buying in banking and metals stocks, gave a boost to investors’ risk-taking appetite.
According to market observers, positive global markets on the back of easing trade war fears among major world economies, coupled with the Central government’s plan to reduce borrowing, uplifted investors’ sentiments.
However, caution ahead of March derivatives expiry on Wednesday added to the initial volatility in the key indices.
On a closing basis, the Nifty50 of the National Stock Exchange (NSE) edged higher by 53.50 points or 0.53 per cent to 10,184.15 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 33,174.39 points — up 107.98 points or 0.33 per cent from the previous session’s close.
The BSE market breadth was bullish with 1,852 advances and 806 declines.
In terms of the broader markets, the S&P BSE mid-cap index rose by 1.06 per cent and the small-cap index by 1.36 per cent.
“Markets ended with modest gains on Tuesday. The gains came on the back of positive Asian and European equity markets. Sentiments turned positive on easing trade war fears between the US and China,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Cut in government’s borrowing plan and ease in global trade tensions lifted the market to float above the 200 DMA. Banks led from the front while bond yield shred by 31 basis points to two months low at 7.31, supporting investors’ sentiment.”
“Mid and small-cap outperformed main indices while caution ahead of F&O (futures and options) expiry limited further upside,” he added.
On Monday, the Central government said it will borrow only Rs 2.88 lakh crore through its benchmark bond scheme in the first half of FY19 — 47.5 per cent of the total budgeted amount — as against 60-65 per cent share in this period in previous years.
The Indian rupee on Tuesday closed almost flat at 64.98 against the US dollar from its previous close at 64.87.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 1,063.12 crore and the domestic institutional investors worth Rs 2,172.91 crore.
All the sectors — barring the S&P BSE telecom index, which fell by 18.92 points — closed with gains.
The S&P BSE banking index surged by 253.46 points, followed by metal index by 224.73 points and capital goods index by 164.15 points.
Major Sensex gainers on Tuesday were: State Bank of India, up 3.04 per cent at Rs 253.85; IndusInd Bank, up 1.56 per cent at Rs 1,787.90; Tata Steel, up 1.30 per cent at Rs 590.05; Asian Paints, up 1.16 per cent at Rs 1,131.75; and Tata Consultancy Services, up 1.02 per cent at Rs 2,841.85.
The Sensex losers were: Bharti Airtel, down 2.42 per cent at Rs 411.45; Bajaj Auto, down 1.27 per cent at Rs 2,803.20; HDFC, down 0.58 per cent at Rs 1,821.95; Wipro, down 0.49 per cent at Rs 272.55; and Hero MotoCorp, down 0.44 per cent at Rs 3,465.85. (IANS)