Indian equities buoy on strong rupee, budgetary expectations

Mumbai, Jan 23 (IANS) Indian equities markets traded on a flat-to-positive note during the mid-afternoon trade session on Monday, as rupee appreciation, coupled with hopes of positive incentives in the upcoming Union Budget and broadly positive Asian indices, kept investors' sentiments buoyed.

The key indices traded marginally in the green, even as gains were capped by profit booking. Healthy buying was witnessed in metal, oil and gas, and FMCG stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 10.90 points or 0.13 per cent, to 8,360.25 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,990.93 points, traded at 27,044.80 points (at 2.00 p.m.) -- up 10.30 points or 0.04 per cent from the previous close at 27,034.50 points.

The Sensex has touched a high of 27,167.79 points and a low of 26,963.58 points during the intra-day trade so far.

The BSE market breadth was tilted in favour of the bulls -- with 1,427 advances and 1,176 declines.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded flat, erasing its morning gains, as global cues remained mixed.

"Asian markets barring Nikkei traded flat-to-positive, but the domestic market witnessed profit booking as investors are in a wait and watch mode for the Union Budget," Desai told IANS.

"(Donald) Trump's protectionist address has made the global markets in a profit-booking mode. Meanwhile, gold has hit a 2-month high as investors sought safer assets amid uncertainty around the economic policies of the new US President and as the dollar declined against other major currencies."

On last Friday, the benchmark indices were dragged lower by negative global cues, disappointing quarterly results and a weak rupee.

The NSE Nifty receded by 85.75 points or 1.02 per cent, to 8,349.35 points, while the BSE Sensex was down 274.10 points or 1.00 per cent .