Equity markets resume upward trend on global cues

Equity markets resume upward trend on global cues

Submitted by alvin on Sat, 2016-09-24 19:07 Mumbai: Positive global and domestic cues marginally lifted the Indian equity markets during the week ended Friday.However, gains were ceded due to volatility over global event risks, outflow of foreign funds and profit booking.The 30-scrip sensitive index (Sensex) of the BSE closed the week's trade with a gain of 69.19 points or 0.24 per cent at 28,668.22 points.Similarly, the 51-scrip Nifty of the National Stock Exchange (NSE) edged up 51.70 points or 0.59 per cent to close at 8,831.55 points."Benchmark indices lacked upside momentum giving up previous day's gains, ending the week on a fragile note," said Nitasha Shankar, Senior Vice President for Research with YES Securities. "For the week, it ended marginally higher, forming another small real body with long shadows suggesting confusion and indecision present in the minds of market participants." Shankar said that the broader markets, however, outperformed the headline indices as stock specific buying interest continued. "Both the midcap and smallcap indices ended higher by 2 per cent," Shankar said. According to Angel Broking, strong global commodity prices boosted materials and mining stocks which in turn supported global equity markets. The firm pointed out that the Bank of Japan (BoJ) also announced plans to expand and fine-tune its quantitative easing policy, which was also a positive for the markets. The benchmark indices began the trading week on a flat note as the global and domestic markets remained subdued ahead of major global financial events.However, investors' sentiments were buoyed on the US Federal Reserve's decision to keep its key interest rates unchanged for September and the announcement of new monetary policy measures by the BoJ.Besides, domestic cues such as the merger of general and railway budgets, along with consultations to advance the budget presentation date, gave a positive momentum to the equity markets.In addition, positive macro-economic data released by the Reserve Bank of India (RBI) on first quarter GDP enhanced investors' risk-taking appetite.The data showed that the country's CAD (Current Account Deficit) narrowed to $0.3 billion or 0.1 per cent of GDP in the quarter."Indian equity markets traded with firm sentiments last week mainly due to buying support from traders," said Dhruv Desai, Director and Chief Operating Officer of Tradebulls."Some support also came with a private report stating that rural demand is likely to turn up in the coming months largely driven by better rains, and Kharif farm income, which is expected to jump 12.3 per cent this year."Moreover, appreciation of the Indian rupee by 32 paise to 66.66 against a US dollar from its previous close of 66.98 last week added to the upward trajectory.Despite that, the equity markets closed on a negative note on the last day of trade mainly due to negative global markets, especially the Asian and European stocks, which were dented by negative US macro-economic data.Investors' sentiments were also subdued on the back of upcoming F