Short covering lifts equity markets

Mumbai, Sep 28 (IANS) Value buying, along with short covering and a firm rupee, lifted the Indian equity markets during the mid-afternoon trade session on Wednesday.

Healthy buying was witnessed in automobile, banking and capital goods stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up 47.90 points or 0.55 per cent to 8,754.30 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,198.88 points, traded at 28,348.12 points (at 2 p.m.) — up by 124.42 points or 0.44 per cent from the previous close at 28,223.70 points.

The Sensex touched a high of 28,348.12 points and a low of 28,198.30 points during the intra-day trade so far.

The BSE market breadth was tilted in favour of the bulls — with 1,639 advances and 863 declines.

On Tuesday, the key indices were pulled lower by a decline in global crude oil prices and foreign fund outflows.

The barometer index had receded by 70.58 points or 0.25 per cent, while the NSE Nifty edged down 16.65 points or 0.19 per cent.

"Short covering and value buying after last couple of day’s falls has pulled the equity markets up. Banking sector, especailly the public sector banks, are leading the recovery," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"Positive European markets and a firm rupee have also supported the upward movement."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with firm sentiments due to short covering.

"IT stocks faced profit booking at higher levels. Auto, Oil-gas and textile stocks also traded firm," Desai said.

"Aviation and FMCG stocks traded with mixed sentiments due to profit booking. Power and cement stocks also traded firm on buying support."