Mumbai, Feb 1 (IANS) Indian equities markets on Wednesday augmented on the back of positive budgetary announcements and a strong rupee to hit a three-month closing high.
Besides, positive global cues, inflow of foreign funds and healthy buying was witnessed in automobile, banking and capital goods sectors supporting the upward trajectory.
The key indices closed above their psychological levels with appreciable gains of more than 1.50 per cent each.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) surged by 155 points or 1.81 per cent, to 8,716.30 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,669.08 points, closed at 28,141.64 points -- up 485.68 points or 1.76 per cent, from the previous close at 27,655.96 points.
The Sensex touched a high of 28,159.54 points and a low of 27,590.10 points during the intra-day trade.
The BSE market breadth was in favour of the bulls -- with 1,913 advances and 915 declines.
In addition, the BSE mid-cap index rose by 1.77 per cent, while the BSE small-cap index was up by 1.68 per cent.
On Tuesday, negative global cues and outflow of foreign funds pulled the benchmark indices lower.
The NSE Nifty edged down 71.45 points or 0.83 per cent, to close at 8,561.30 points, while the BSE Sensex was down 193.60 points or 0.70 per cent to 27,655.96 points.
"The S&P BSE Sensex and the Nifty 50 both hit more than three-month high today and closed above their psychological levels," Vijay Singhania, Founder and Director of brokerage firm Trade Smart Online, told IANS.
"Buying was triggered as there was no mention of long-term capital gains tax in the budget speech as was the fear among investors, while firmness in global stocks also supported the rally."
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, a long build up was seen during the intra-day trade in many of the sectors, especially in infrastructure and small-caps, owing to reduction in corporate tax for SME (small and medium enterprises) and the Union Budget's focus on rural development and housing.
"The only sector that sulked today was the IT sector because of Trump's policy against H-1B visa. Other than that all sectors traded in green," Desai said.
"The only drawback was failure to reduce corporate tax, but the equity markets took it in stride instead focusing on positive news of no changes in long term capital gain and also no change in the GST policy."
The Indian rupee strengthened by 39 paise to 67.48 against a US dollar from its previous close of 67.87 to a greenback.
The provisional data with exchanges showed that foreign institutional investors (FIIs) purchased stocks worth Rs 92.73 crore, while the domestic institutional investors (DIIs) bought scrip worth Rs 1,133.74 crore.
"Banking stocks remained in the limelight as the expectations of rate cut have increased with food prices stable," Singhania added.
"Auto stocks gained as focus on rural sector and cut in tax rate on household incomes in the budget will boost demand."
Sector-wise, the S&P BSE automobile index increased by 753.97 points, followed by the banking index, which rose by 615.42 points, and the capital goods index, which edged up by 322 points.
on the other hand, the S&P BSE IT index plunged by 119.44 points, the healthcare index declined by 47.71 points, and the Teck (technology, media and entertainment) index slipped by 46.85 points.
Major Sensex gainers on Wednesday were: Maruti Suzuki, up 4.69 per cent at Rs 6,172.85; Mahindra and Mahindra (M&M), up 4.64 per cent at Rs 1,296.90; ITC, up 4.51 per cent at Rs 269.70; ICICI Bank, up 4.40 per cent at Rs 280.90; and State Bank of India (SBI), up 3.96 per cent at Rs 270.30.
Major Sensex losers were: Tata Consultancy Services (TCS), down 2.71 per cent at Rs 2,169.45; Infosys, down 1.37 per cent at Rs 916.55; NTPC, down 1.27 per cent at Rs 170.55; Sun Pharma, down 1.06 per cent at Rs 624.85; and ONGC, down 0.94 per cent at Rs 200.25.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.
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